USDA report proves bearish for wheat

Market Line October 12, 2009 Wheat futures closed lower Friday but did manage to recover from double digit losses. A stronger dollar was bearish for wheat and so was the USDA supply and demand report. Louise Gartner for the Linn Group at the Chicago Board of Trade says ending stocks were increased 120 million bushels from last month.

Gartner: “And that takes us up to 864 million bushels for wheat. Certainly no shortage of wheat in the United States or around the world, as we saw production estimates increasing another 4.5 million tonnes for the world. Some of that of course coming from the U.S., but world ending stocks were actually left unchanged.”

Given the way wheat performed under heavy pressure Gartner thinks a base of strong support is building.

On Friday Chicago December wheat was down six cents at 4-68. December corn down 1 ¾ at 3-62 ¼. Portland soft white wheat steady at mostly 4-53. Club wheat premium $3.25. HRW 11.5 % protein down a nickel at 5-26. DNS 14% protein seven to nine cents lower at 6-38. No Portland barley bids.

Cattle futures were higher Friday in what may have been a short covering rally. Cash cattle sold lower last week but boxed beef was steady Friday on good volume, which has analysts thinking maybe the beef market is near a low. Weak corn helped feeders. December live cattle up 62 cents at 84-95. November feeders up 67 at 94-47. November Class III milk up 19 cents at 14-50.

I’m Bob Hoff and that’s Market Line on the Northwest Ag Information Network.

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