U.S. picking up wheat export business

Market Line September 7, 2010 Wheat futures saw some big gains Friday heading into the long holiday weekend. USDA had reported some sales of U.S. hard red winter wheat to Egypt and unknown destinations. Analysts said Russia’s plan to keep its grain export ban in place until after the 2011 harvest also continued to offer support.

Banning exports is one thing but will Russia need any significant grain imports? USDA analyst Jerry Norton says the department’s August analysis said no;

Norton: “But they have not only been affected by their spring wheat crop they also have had significant damage of their spring crops of corn and barley which are the main coarse grains for feeding. So, will have to see where the crop turns out for wheat and these other crops because they are certainly tight in supplies of grain even with the ban in place.”

On Friday USDA will update the Russian situation as well as world supply and demand.

On Friday Chicago December wheat up 27 ½ cents at 7-41 ¼. December corn up 17 cents at 4-64 ½. Portland soft white wheat five to 15 cents higher at mostly 6-63. Club wheat premium mostly 19 cents. HRW 11.5 % protein up 26 cents at 7-52. No Portland DNS bids. Minneapolis December spring wheat up 23 ¼ cents at 7-58 ¼.

Cattle futures were mixed going into the holiday weekend. Cash fed cattle were lower on the week and profit taking was cited as a factor along with positioning for the long weekend. Higher corn was negative for feeder contracts. October live cattle unchanged at 98-45. October feeders down 42 at 115-07. October Class III milk down two cents at 15-63.

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

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