Canadian wheat stocks surprise traders

Market Line September 9, 2010 Wheat futures posted some double digit losses Wednesday. Traders said there was disappointment that Egypt purchased French wheat in its latest tender. Algeria also bought all French wheat. Additionally Stats Canada reported wheat stocks up 19 percent from last year which was well above trade expectations. Rains are also in the forecast for Russia which would help winter wheat planting.

Friday morning USDA issues updated supply and demand numbers and Outlook Board Chairman Gerry Bange says;

Bange: “It is our job of course to consider what is going on in Russia, what is going on in the EU-27, China, Indonesia, Pakistan and so forth. We have to take into account the crop situation in all of those countries to look at the overall supply picture in the world and where we think trade is going to flow.”

On Wednesday Chicago December wheat down 24 ¼ cents at 7-11. December corn down 3 ¾ cents at 4-62 ½. Portland soft white wheat was up a nickel to down a nickel at mostly 6-59. Club wheat premium mostly eight cents. HRW 11.5 % protein down 18 cents at 7-29. DNS 14 percent protein down 21 at 8-28.

Cattle futures were mostly steady to higher Wednesday. Buying was attributed to an oversold condition. Also some cash fed cattle sold at 98 dollars in the Plains, up a dollar from most of last week’s sales. Boxed beef was also higher at midday. October live cattle up 90 cents at 97-25. October feeders steady at 112-42. October Class III milk up four cents at 15-68.

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

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