Wheat stocks more than expected; corn too.

Market Line October 1, 2010 Wheat futures closed lower Thursday but well above the day’s lows. Wheat was hit hard early not only by USDA’s number for wheat stocks which was higher than expected, but says Joe Prusacki of the National Agricultural Statistics Service, also a big corn stocks number of 1.7 billion bushels.

Prusacki: “Just a very surprising number.”

USDA did however trim this year’s wheat production in the Small Grains report, down two percent from an August forecast to 2.22 billion bushels, which was viewed as positive.

Not helping wheat futures was the weekly export sales report which came in under trade expectations although the number was above what is needed on a weekly basis to meet USDA’s marketing year export projection.

On Thursday Chicago December wheat down 9 ½ cents at 6-74. December corn down 9 ¼ cents at 4-95 ¾. Portland soft white wheat down 15 cents at mostly $6. Club wheat premium mostly 25 cents. No Portland red wheat bids. Minneapolis December spring wheat down three cents at 7-21.

Cattle futures were higher Thursday despite lower cash fed cattle this week and falling boxed beef prices. The drop in corn helped feeder contracts and provided some spillover for live contracts. Good weekly exports were also cited as supportive. December live cattle up 102 at 99-60. November feeders up 222 at 112-02. November Class III milk up 18 cents at 15-92.

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

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