Wheat prices plummet

Market Line January 13, 2010 A USDA estimate of U.S. winter wheat plantings down 14 percent from last year, and the smallest acreage in nearly a century, couldn’t keep wheat futures, as well as cash prices at Portland, from plunging Tuesday, though wheat futures did close above the days lows.

Brian Hoops with Midwest Market Solutions says the bad news for wheat was the USDA ending stocks projection.

Hoops: “Wheat sold off hard because USDA reported a huge increase in wheat stocks up to 976 million bushels. That is up 76 million from last month.”

And which would increase U.S. ending stocks almost a third from last year.

Also pressuring wheat was the USDA corn crop production number, a new record of 13.51 billion bushels.

On Tuesday Chicago March wheat was down 36 ¾ cents at 5-35 ¾. March corn down 30 cents at 3-92 ½. Portland soft white wheat 20 to 25 cents lower at mostly 4-75. New crop August soft white dropped 20 to 30 cents at 4-70 to $5. Club wheat premium mostly $3. No old crop red wheat bids at Portland. New crop August HRW 11.5 % protein over 30 cents lower at 5-89 to 5-93. August new crop DNS 14% protein 35 to 45 cents lower at 6-47 to 6-57. No Portland barley bids.

Cattle futures were mostly higher Tuesday with feeder contracts posting triple digit gains. Higher boxed beef and the bearish grain reports were positive for cattle. Feb live cattle up 40 cents at 85-45. March feeders up 190 at 98-30. February Class III milk down a dime at 13-65.

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

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