Wheat futures lower; cattle contracts mixed

Market Line October 14, 2010 Wheat futures saw modest losses Wednesday. A lower dollar supported contracts early but then a sell off in corn spilled over and pressured wheat.

USDA did announce the sale of 100-thousand metric tons of U.S. hard red winter wheat to Iraq, which also purchased Australian and Ukrainian wheat.

Again commentators note the dryness in the soft red winter wheat belt and some spreading dryness in the hard red winter wheat states as well.

The EPA did announce it is allowing the sale of fuel with up to 15 percent ethanol for cars and light truck models 2007 or newer. A decision on E-15 for 2001 to 2006 models is yet to come. The corn market didn’t react much to the news.

On Wednesday Chicago December wheat down 7 ¼ cents at 7-02 ¾. December corn down 9 ¾ cents at 5-69 ¼. Portland soft white wheat steady to down a nickel at mostly 5-93 with limited bids. Club wheat premium mostly 17 cents. No Portland red wheat bids. Minneapolis December spring wheat down 3 ¼ cents at 7-51.

Live cattle futures were lower Wednesday, feeders higher. Profit taking was cited and lower corn was bearish for live cattle bullish for feeder contracts.

December live cattle down 82 cents at 98-47. November feeders up 87 cents at 108-12. November Class III milk down two cents at 16-13.

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

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