Wheat futures mixed after bearish USDA number

Market Line December 11, 2009 Only Chicago wheat futures closed higher Thursday. USDA raised U.S. wheat ending stocks more than expected up to 900 million bushels on lower food use. Terry Linn of the Linn Group at the Chicago Board of Trade says;

Linn: “In spite of the big wheat and corn crops being confirmed again those markets were able to rally off of oversold conditions in the December slide in prices.”

The increase in U.S. stocks came in the red wheats, both hard and soft, while white wheat carryout was cut ten million bushels from last month to 42 million. World stocks were increased by two million tons.

The weekly export sales report for wheat came in under trade expectations.

On Thursday Chicago March wheat was up 1 ¾ cents at 5-37. March corn up 9 1/2 cents at 3-93. Portland soft white wheat steady to a dime lower at mostly 4-98. Club wheat premium $3. HRW 11.5 % protein mixed at 5-57. No Portland DNS bids. No Portland barley bids.

Cattle futures were mixed Thursday. A few sales of cash fed cattle as low as 78 dollars were reported in the southern plains. Feeders felt the higher corn futures. Feb live cattle up 25 cents at 82-17. January feeders down 32 at 90-72. January Class III milk up 14 cents at 14-80. USDA reported that U.S. dairy exports in October were up 19 percent from October of last year.

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

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