Poor wheat export number

Market Line January 8, 2010 Wheat futures gave back about half of Wednesday’s big gains on Thursday. Strength in the dollar was cited. Also the weekly export sales report was called dismal coming in well under trade expectations at only 3.4 million bushels. Wheat also got spillover pressure from soybeans. Terry Linn with the Linn Group at the Chicago Board of Trade explains what happened to beans.

Linn: “An announcement by the Chinese government that they will tighten their credit availability and implying that their major soybean importing program could be scaled back.”

Adequate snow cover is expected to protect much of the Plains and Midwest winter wheat from the cold being experienced in those regions but the southern soft red winter wheat crop, which has no snow, may experience freezing and thawing, which could damage plants.

On Thursday Chicago March wheat was down 9 ½ cents at 5-57 ¾. March corn down 4 ¼ cents at 4-17 ½. Portland soft white wheat steady to a nickel lower at mostly 5-02. New crop August soft white was steady to higher at $5 to 5-20. Club wheat premium $3.25. New crop August HRW 11.5 % protein down 11 cents at 6-05 to 6-15. Last half January DNS 14% protein lower at mostly $7. No Portland barley bids.

Live cattle futures were mixed Thursday with feeders mostly higher. The cold weather and its impact on weight gain was supportive to the market but beef demand concerns pressured prices. Feb live cattle down two cents at 85-92. March feeders up seven at 96-82. February Class III milk up 11 cents at 13-63.

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

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