USDA numbers bring losses in wheat futures

Market Line March April 1, 2010 Wheat futures suffered up to twenty cent plus losses Wednesday in the wake of USDA planting and stocks reports. While wheat stocks were viewed as neutral to friendly USDA’s all wheat estimate of 53.8 million acres was about 500-thousand above pre-report expectations. A bearish corn stocks number didn’t help. Mike Krueger of the Money Farm says right now there is still no reason for wheat prices to go up.

Krueger: “In terms of supply and demand numbers they are big. I mean we are not going to trend world wheat ending stocks much this year unless we have some fairly significant crop problems. We will not build supplies either it looks to me.”

USDA pegged non-durum spring wheat acres at 13.9 million and Krueger thinks that could go higher particularly in the northern plains.

On Wednesday Chicago May wheat was down 21 ½ cents at 4-50 ½. May corn down 9 ½ cents at 3-45. Portland soft white wheat down 10 to 12 cents at mostly 4-63. New crop August soft white down 10 to 15 cents at 4-60 to 4-65. Club wheat premium $3-67. HRW 11.5 % protein at 5-04 with no comparison. DNS 14% protein at mostly 6-75. No Portland barley bids.

Cattle futures were higher Wednesday with feeders showing the best gains on lower corn. Traders were still thinking the week’s cash fed trade will be steady to firm. While show lists were smaller this week some commentary says packers will soon have access to increased supplies of contract cattle.

June live cattle up 37 cents at 93-55. May feeders up $2 at 112-97. May Class III milk down 14 cents at 13-19.

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

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