Wheat gets not so friendly supply and demand numbers but weekly exports were bullish

Market Line September 13, 2010 Wheat futures were mixed Friday with nearby contracts the weakest. USDA raised U.S. wheat export prospects but its U.S. carry out, world wheat production and world wheat ending stocks came in above trade expectations.

USDA’s weekly export sales report had bullish news. Exports exceeded trade expectations with large numbers for both marketing year and next. Another wheat sale to Egypt was also announced.

So, what now. Lynn Smith of the Zaner Group at the Chicago Board of Trade.

Smith: “We will go back to trading the reports. We have crop progress coming out Monday. Export inspections out Monday. Then the export report on Thursday. Of course back to watching weather. We will be watching the Canadian weather to see if this frost does hit as they expect and how much damage it does or doesn‘t to the crop there.”

On Friday Chicago December wheat down 1 ¼ cents at 7-36 ¾. December corn up 7 ½ cents at 4-78 ¼. Portland soft white wheat steady to a nickel lower at mostly 6-53. Club wheat also mostly 6-53. No red wheat bids at Portland. Minneapolis December spring wheat down 2 ½ cents at 7-57.

Live cattle futures were mostly higher Friday with feeder contracts mixed. Short covering was cited and USDA raised its estimates for U.S. beef exports. Higher corn was supportive to deferred live cattle but negative to feeders. October live cattle up 25 cents at 97-15. October feeders up seven cents at 111-82. October Class III milk up a nickel at 15-80.

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

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