Wheat futures lower after USDA report

Market Line November 10, 2010 USDA reduced both U.S. and world wheat ending stock estimates slightly in its report Tuesday but wheat futures closed lower. Contracts had moved sharply higher in early trading as corn and beans rallied on friendly USDA numbers but only beans held on to close higher. An upturn in the U.S. dollar was cited as a negative for wheat.

With the government reports out of the way Brian Hoops of Midwest Market Solutions doesn’t expect the focus of traders to change.

Hoops: “Wheat has been following the crop condition ratings and should continue to do that through the rest of November.”

Forecasts now suggest some of the dry winter wheat belt will get moisture late in November.

On Tuesday Chicago December wheat down 14 ½ cents at 7-21 ¾. December corn down nine cents at 5-76 ¼. Portland soft white wheat steady to a dime lower at mostly 6-20. Mostly no Club wheat premium. No Portland red wheat bids. Minneapolis December spring wheat futures down 8 ¼ cents at 7-95 ½.

Live cattle futures were mixed with feeders higher Tuesday. Ideas are cash fed cattle will trade lower this week. USDA’s tightened numbers on corn carryover helped deferred contracts. A late day break in corn futures boosted feeder contracts. December live cattle down 20 cents at 98-20. January feeders up 180 at 113-42. December Class III milk up 19 at 13-51.

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

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