Grain futures up despite Fed action; cattle on feed numbers down
Market Line February 22, 2010 Wheat futures gained a few cents Friday. Terry Linn of the Linn Group at the Chicago Board of Trade says the Fed’s increase in a key interest rate Thursday did have an impact. Linn: “Fed discount rate move resulted in a sharply higher dollar sending grains lower initially but the market spent the day firming back with the help with March option expiration and a weakening dollar.” Weekly export sales for wheat came in within trade expectations. At its USDA Outlook Conference the USDA pegged 2010/2011 ending wheat stocks at 940 million bushels versus this marketing year’s forecast of 981 million. On Friday Chicago May was up 4 ½ cents at 5-04. May corn up 2 ¾ cents at 3-71 3/4. Portland soft white wheat steady to a dime lower at mostly 4-67. New crop August soft white steady to down a nickel at 4-55 to 4-70. Club wheat premium $3.67. HRW 11.5 % protein two to four cents higher at 5-38. DNS 14% protein five to six cents higher at 6-76. No Portland barley bids. USDA’s Cattle on Feed report Friday put the nation’s feedlot inventory as of February 1st at 11-million head down three percent from last year. Placements were two percent below 2009 and marketings were two percent above last January. Ahead of the report cattle futures were mixed. April live cattle up 25 cents at $93. April feeders up a dime at 104. April Class III milk down 15 cents at 13-04. USDA reported Friday that January milk production in the major producing states was down sixth-tenths of a percent from January of 2009. I’m Bob Hoff and that’s Market Line on the Northwest Ag Information Network. Now this.
