Corn up but wheat down

Market Line October 12, 2010 The analysts are saying wheat will benefit from corn but that wasn’t the case Monday with corn futures sharply higher and wheat futures closing lower. There was commentary that funds were adding to short positions in wheat. Dollar strength was also cited as bearish.

Egypt was tendering for hard wheat with results likely today.

There is occasional talk about dryness in western Australia but USDA did not change its forecast for the Australian crop in Friday’s report and Peter Georgantones of Investment Trading Services in Bloomington, Minnesota says USDA’s estimate seems okay.

Georgantones: “It is a little bit dry but seem people talk about a 24-25 million ton crop. I think 23 is pretty fair right now. I don‘t think it will mean a lot to the overall price structure.”

On Monday Chicago December wheat down a dime at 7-09 ¼. December corn up 27 ½ cents at 5-55 ¾. Portland soft white wheat called steady to weak at mostly 5-98 with some exporters not offering bids. Club wheat premium mostly 17 cents. No Portland red wheat bids. Minneapolis December spring wheat down 14 ½ cents at 7-50.

Cattle futures were mixed Monday. Traders said uncertainty about just where corn prices were headed was a factor. Higher corn did pressure feeders. Better boxed beef prices during the day fed speculation we may be about at the bottom for beef prices. December live cattle down 12 cents at 98-75. November feeders down 52 at 107-12. November Class III milk down four cents at 16-28.

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

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