Weather remains bullish for wheat

Market Line December 6, 2010 Wheat futures shot higher again Friday on weather concerns and Allen Motew with the Linn Group at Chicago says this week’s forecast shows little change for areas the market is focused on. Like eastern Australia where rain is impacting ripe grain.

Motew: “No relief in sight for that area. Not only in the week coming up here but perhaps longer as the model keeps saying the wet pattern induced by La Nina will continue there.”

Reports from Australia suggest anywhere from 50 percent to 90 percent of eastern Australia’s wheat crop may be downgraded to feed quality.

In addition to parts of the U.S. hard red winter wheat belt, dry areas of concern now also include Argentina and central China.

On Friday Chicago March wheat up 30 ½ cents at 7-79. March corn up 18 cents at 5-73 ½. Portland soft white wheat by rail only 40 to 20 cents higher at mostly 6-93. Club wheat premium mostly 13 cents. Hard red winter 11.5 percent protein 20 to 30 cents higher at mostly 8-12. No Portland DNS bids. Minneapolis December spring wheat futures up 22 cents at 8-35 ¼.

Cattle futures were mixed Friday. Profit taking put some pressure on prices. The employment numbers Friday were bearish for cattle as traders are concerned about demand. February live cattle down a dime at 106-37. January feeders unchanged at 118-67. January Class III milk up two cents at 13-68.

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

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