Friendly USDA report doesn't help wheat; club wheat premium drops

Market Line April 12, 2010 Wheat futures lost a few cents Friday. This was despite what Brian Hoops of Midwest Market Solution says was some bullish news in USDA’s supply and demand report, a 51 million bushel reduction in U.S. wheat carryout due in part to higher exports.

Hoops: “It was not expecting any type of movement as far as exports, certainly an increase in exports as we have seen no evidence of that in the weekly numbers are far as inspections or weekly sales. So, 950 million bushels is still a burdensome number for the wheat market to contend with but not as big as we saw in the month of March.” 20

USDA also dropped its world wheat ending stocks one million metric tons from last month’s forecast.

On Friday Chicago May wheat was down 3 ½ cents at 4-65 ¾. May corn down 2 ½ cents at 3-45 ¾. Portland soft white wheat steady at mostly 4-70.  New crop August soft white also unchanged at 4-70 to 4-75. Club wheat premium dropped sharply and was at mostly two dollars with some exporters not offering a premium. HRW 11.5 % protein steady to down two cents at mostly 5-29. DNS 14% protein three to 13 cents lower at mostly 6-90. No Portland barley bids.

Cash fed cattle prices of 100 to 102 dollars a hundredweight last week spurred cattle futures to new highs Friday. Feeder contracts followed the live cattle and also got help from lower corn. June live cattle up 42 cents at 94-75. May feeders up 132 at 115-37. May Class III milk up a penny at 13-75.

I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.