Outside markets pressure wheat and cattle futures

Market Line December 9, 2009 Wheat futures posted modest losses Tuesday, the sixth straight day of lower prices. There was pressure from outside markets and it is expected Thursday’s USDA supply and demand report will be a reminder of the bearish world wheat supply situation.

The Australian government lowered its estimate for the wheat crop down under to 22 million tonnes from 22.7. Louise Gartner for the Linn Group at the Chicago Board of Trade says that is a respectable crop.

Gartner: “It is expected there will be fairly high quality as usual and they are already starting to break into the export market with some sales last week into Southeast Asia.”

Northwest growers think the winter wheat is generally doing okay during this current cold snap despite no snow cover.

On Tuesday Chicago March wheat was down 8 ¼ cents at 5-39 ¾. March corn up 1 ¼ cents at 3-85. Portland soft white wheat was three cents lower to a nickel higher at mostly 5-05. Club wheat premium $3. HRW 11.5 % protein two to four cents lower at 4-64. No DNS Portland bids. December Minneapolis spring wheat futures were down 5 ½ cents at 5-33 ¾. No Portland barley bids.

Cattle futures were lower Tuesday. There was pressure from outside markets and traders are nervous about this week’s cash fed prices. Winter weather in the Plains is providing some support. Cash feeders were reported steady to lower. Feb live cattle down 17 cents at 83-12. January feeders down 80 at 92-05. January Class III milk up six cents at 14-50.

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

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