Aussies see chance of La Nina

Market Line May 13, 2010 Wheat futures were lower Wednesday. Grains started higher on rumors of more Chinese purchases of U.S. corn but when USDA failed to confirm that prices pulled back. Brian Hoops of Midwest Market Solutions in Yankton, South Dakota says that could still be a factor today, which will also see weekly export sales from USDA.

Hoops: “My opinion is I don‘t think the market is going to react to the export sales numbers but it certainly could to a confirmation of Chinese sales. We did not have a very strong technical close mainly off the weakness of the China news but if we get confirmation this morning we could reverse the losses and move higher.”

Australia’s weather bureau says El Nino has returned to neutral and it is expected there is a 40 percent chance of La Nina developing in late summer or early fall. That usually brings wetter conditions to Australia.

On Wednesday Chicago July wheat was down 1 ¾ cents at 4-91 ½. July corn up 1 ¼ cents at 3-78 ¼. Portland soft white wheat up a nickel at mostly 4-84. New crop August soft white steady to down a nickel at 4-80 to 4-90. Club wheat premium mostly $1.50. HRW 11.5 % protein down three cents at 5-36. DNS 14% protein down three cents at 6-65. No Portland barley bids.

Cattle futures closed lower Wednesday. Profit taking and steady cash fed cattle sales were noted and analysts pointed out live cattle are still in an uptrend despite the lower day. Lower live cattle pressured feeder contracts.June live cattle down 110 at 95-70. August feeders down 82 at 114-77.June Class III milk up a penny at 13-73.

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

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