Wheat and cattle futures mostly lower

Market Line November 4. 2010 Wheat futures traded mostly lower Wednesday with Minneapolis the strongest market. Traders have differing views about how much the rain in the forecast will help dry areas of the winter wheat belt.

Early strength in the dollar pressured wheat then after the close the Federal Reserve announced it would pump 600-billion dollars into the economy and the greenback eventually weakened, which commentators said could offer support.

USDA grain analyst Jerry Norton says most of the benefit to the U.S. from the Russian grain export ban is probably yet to come.

Norton: “Well we still struggle against some of the more competitive supplies coming out of Europe at this time, but at some point we believe that U.S. supplies remain abundant here so we expect to be able to be more competitive as we go through the year against those European supplies.”

On Wednesday Chicago December wheat down four cents at 6-90 ¼.

December corn up 5 ¼ cents at 5-81. Portland soft white wheat steady on limited bids at mostly 6-31. Club wheat premium mostly 13 cents. No Portland red wheat bids. Minneapolis December spring wheat futures down a half cent at 7-62 ¼.

Cattle futures were mostly lower Wednesday. Cash fed cattle have been selling two dollars lower this week. Traders said futures dropped through support levels triggering selling. Higher corn put added pressure on feeder contracts. December live cattle down 55 cents at 97-70. January feeders down 65 at 111-40. December Class III milk down 24 cents at 13-98 as cheese prices continued to fall.

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

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