Wheat futures lower on slightly bearish USDA report

Market Line December 13, 2010 Futures traders didn’t quite get what they expected Friday when USDA updated its supply and demand numbers for grains.

Pound: “The market had been anticipating a very friendly wheat report, a somewhat friendly corn report and a kind of lackluster bean report and it actually turned kind of the opposite of that.”

Helen Pound of Penson GHCO who says instead of lowering U.S. wheat ending stocks by about ten million bushels USDA raised them ten million. That put pressure on wheat futures Friday and they closed mostly lower. World wheat carryout was also raised and stands at a stock-to-use ratio of 22 percent, which Pound says is friendlier than it might appear.

Pound: “A lot of it is in China and India not really available to some of the countries that may need it.”

On Friday Chicago March wheat down 13 cents at 7-75 ½. March corn unchanged at 5-74 ¼. Portland soft white wheat by rail only steady at mostly 7-50. Portland Club wheat premium mostly 17 cents. Hard red winter 11.5 percent protein down 12 cents at mostly 8-22. No Portland DNS bids.

Minneapolis December spring wheat futures down 4 ½ cents at 8-69 ½.

Cattle futures were mixed Friday. Cash fed cattle continued to sell lower than the previous week at 101 to 102 dollars. Also negative was an updated USDA forecast for higher beef production this year and next. February live cattle down 67 cents at 103-95. January feeders up a dime at 118-17. January Class III milk down six cents at 13-02.

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

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