Frost in extended Canadian forecast as wheat futures post gains

Market Line September 10, 2010 The USDA issues its September crop report and updates supply and demand tables this morning. For wheat the greatest interest will be foreign production numbers like Russia.

Heading into the report Thursday wheat futures were sharply higher and Lynn Smith of the Zaner Group says a Canadian weather forecast with frost in it was a factor.

Smith: “And the fear now is if they have an early frost it could lower the quality of the grain to feed grain status. So it is a big concern and certainly would justify a sizeable move on the upside if it does occur. Again, it is a weather forecast like anything else and it is a couple of weeks out for the most part.”

Also helping the market was a USDA announcement of 200-thousand metric tons of U.S. hard red winter wheat sold to unknown destinations.

On Thursday Chicago December wheat up 27 cents at 7-38. December corn up 8 ¼ cents at 4-70 ¾. Portland soft white wheat was mixed at mostly 6-55. Club wheat premium mostly a dime. HRW 11.5 % protein up 25 cents at 7-54. No Portland DNS bids. Minneapolis December spring wheat up 26 ¼ cents at 7-59 ½.

Cattle futures were lower on Thursday. Profit taking and lower boxed beef were cited. Some cash fed sales were reported at prices weaker than earlier in the week at 96 and 97 dollars. October live cattle down 35 cents at 96-90. October feeders down 67 at 111-75. October Class III milk up seven cents at 15-75.

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

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