Mixed wheat and cattle futures

Market Line December 9, 2010 Wheat futures were mixed but mostly higher Wednesday. Traders said a higher dollar provided some pressure. So did some spreading from wheat into corn.

Support continues to come from the wet conditions in Australia, which may get a break for a few days before rains come back next week. Skeptics of the Australian governments new forecast for record wheat production emphasize that wheat quality is going to be more important than quantity.

This morning is the weekly export sales report for wheat from USDA and then tomorrow morning the USDA provides its monthly update for supply and demand. Traders expect a drop in U.S. wheat ending stocks.

On Wednesday Chicago March wheat down ¾ of a cent at 7-84. March corn up 12 ¾ cents at 5-74 ½. Portland soft white wheat by rail only as much as 60-cents higher at mostly 7-50 on good exporter demand to fill waiting vessels. Club wheat premium at Portland mostly 17 cents. Hard red winter 11.5 percent protein a nickel higher at mostly 8-28. No Portland DNS bids.

Minneapolis December spring wheat futures up 7 ¾ cents at 8-62 ¾.

Cattle futures were mixed Thursday. Lack of cash fed cattle sales meant little direction for the market. Beef markets were called firm. Traders thought Tuesday’s sell off was overdone. February live cattle up seven cents at 104-62. January feeders up 95 at 118-17. January Class III milk down 15 cents at 13-20.

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

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