U.S. Wheat still can't compete

Market Line January 29, 2010 Wheat futures were lower Wednesday. There was pressure from the dollar as well as news that U. S. Wheat is still 30 dollars a ton more expensive than Black Sea wheat. Egypt just purchased 180-thousand metric tons, all of it from Russia. Commodities in general saw a sell off. Traders evened up positions ahead of the president’s address.

Traders get the weekly export sales report from USDA this morning.

On Wednesday Chicago March wheat was down 10 ¼ at 4-83 ¾. March corn down four cents at 3-58 ¼. Portland soft white wheat steady to down a dime at mostly 4-82. New crop August soft white steady to down 15 cents at 4-65 to 4-85. Club wheat mostly 8-15. HRW 11.5 % protein four to seven cents lower at mostly 5-36. DNS 14% protein mixed at mostly 6-49. No Portland barley bids.

Cattle futures were also lower Wednesday after starting the day higher. There are expectations of a lower cash trade and weakness in the beef trade. Uncertainty in the economy and the higher dollar is limiting consumer beef demand. Live cattle down 35 cents at 88-97. March feeders down 45 at 98-52. March Class III milk down 27 cents at 13-68.

Coming up tomorrow is USDA’s annual cattle inventory report.

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

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