A negative report surprise for wheat

Market Line March 11, 2010 Wheat futures posted moderate losses Wednesday. Instead of lowering its projection for U.S. wheat ending stocks this marketing year, Joe Victor of Allendale Incorporated says the USDA raised its projection 20 million bushels from last month.

Victor: “Wheat, we are now over a billion bushels and it was primarily in the food use sector. We were at 981 million bushels.”

USDA raised white wheat carryout 12 million bushels from the February report to 52 million bushels. World wheat carryout out was raised about one million tons.

Brazil says it may triple its tariffs on U.S. wheat imports. It can do so because it won a WTO dispute settlement over U.S. cotton subsidies.

On Wednesday Chicago May wheat was down eight cents at 4-81 ½. May corn down 3 ½ cents at 3-65 ½. Portland soft white wheat steady to a nickel lower at mostly 4-58. New crop August soft white unchanged at 4-60 to 4-70. Club wheat premium $3.67. HRW 11.5 % protein down seven cents at 5-23. DNS 14% protein down four cents at 6-74. No Portland barley bids.

Cattle futures were lower Wednesday. Profit taking was cited on technically overbought conditions. Cash fed cattle are expected to trade at steady money this week. Although feeder futures were lower cash feeder demand was said to be good. April live cattle down 52 cents at 93-87. April feeders down $1 at 105-25. April Class III milk up 11 cents at 12-66.

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

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