Winter wheat ratings help futures

Market Line October 27, 2010 Wheat futures had strong gains Tuesday. The low condition rating for the U.S. winter wheat crop Monday, the first of the crop year, was cited as a factor. The crop was rated only 47 percent good to excellent, fifteen points below last fall and the lowest since the 1990‘s.

Another positive, news of an Australian wheat crop estimate of 22 million metric tons, down from previous forecasts of 24 to 25 million.

Meanwhile on the weather front, USDA meteorologist Brad Rippey has this to say about that winter storm moving through the northern half of the U.S.

Rippey: “This is certainly, probably one of the early signs of La Nina beginning to exert its influence on the atmosphere. We do expect frequent stormy, wind conditions across the Pacific Northwest stretching all the way into the Northern Plains and Upper Midwest. This could be considered a classic early season La Nina type storm system.” :

On Tuesday Chicago December wheat up 18 cents at 6-92. December corn up 2 ¼ cents at 5-71. Portland soft white wheat steady to a dime lower at mostly 6-03. Club wheat premium mostly 25 cents. No Portland red wheat bids. Minneapolis December spring wheat futures up 13 ¼ cents at 7-45 ¾.

Live cattle futures were lower Tuesday with feeder contracts mixed. A break in boxed beef prices was cited and viewed as a potential short term top. Some profit taking and positioning for the end of the month were also mentioned a factors. December live cattle down 55 cents at 100-10. January feeders up 17 at 111-92. December Class III milk unchanged at 14-89.

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

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