Export sale and weather help wheat futures

Market Line December 7, 2010 Wheat futures continued to post gains Monday. Price drivers remain U.S. and Australian weather. The quality of 50 percent or more of wheat in eastern Australia is threatened by more rain this week, an expected two inches or more.

Allen Motew, chief meteorologist at the Linn Group at the Chicago Board of Trade says a few dry areas of the U.S. hard red winter wheat belt may get some moisture this week, but then:

Motew: “Then we see no rainfall or snow for the next two-week period in this region.”

Another bit of bullish news Monday was USDA announcing the sale of 160-thousand metric tons of U.S. hard red winter wheat to unknown destinations. Weekly export inspections were within trade expectations at just over 19 million bushels.

On Monday Chicago March wheat up 14 cents at 7-93. March corn down 5 ½ cents at 5-68. Portland soft white wheat steady to 20 cents higher at mostly $7 for rail delivery only. Club wheat premium mostly 17 cents. Hard red winter 11.5 percent protein 15 cents higher at 8-27. No Portland DNS bids. Minneapolis December spring wheat futures up 15 cents at 8-50-¼.

Cattle futures were mixed Monday. Expectations are for steady cash fed cattle prices this week after reaching a seven-year high last week. Higher boxed beef provided some support. Lower corn also helped some feeder contracts.

February live cattle up a nickel at 106-42. January feeders down 17 at 118-50. January Class III milk down 23 cents at 13-45 on lower prices for barrel cheese.

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

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