Gains for wheat futures; feedlot inventory up

Market Line December 20, 2010 Wheat futures had modest gains Friday. Spread trading and weekend positioning were cited as factors. Support continues from dry areas of the U.S. hard red winter wheat belt and reduced Australian wheat quality, though some traders say the weather issues are now factored into the market.

On Friday, Chicago March wheat up seven cents at 7-56 ¾. March corn up nine cents at 5-96 ½. Portland soft white wheat by rail only, steady at 7-42 on limited bids. Club wheat premium mostly 17 cents. New crop August soft white 6-84 to 7-15. Only new crop red wheat bids at Portland with hard red winter 11.5 percent protein at 8-05 to 8-25 and 14 percent DNS 9-11 to 9-16.

Cattle futures were higher Friday on what was called short covering ahead of USDA’s Cattle on Feed report for which department analyst Shayle Shagum has the details.

Shagum: “Looking at the number of cattle placed on feed in November we were about 1.96 million head, which was about 6% above a year ago. We marketed just under 1.8 million head in November. About 9% above a year ago. And then on feed in December we were at 11.6 million head which was 3% above a year ago.”

February live cattle up 97 cents at 104-50. January feeders up 65 at 119-02.

January Class III milk up a penny at 13-28 ahead of the USDA reporting that milk production in the major producing states in November was up 3.1 percent from a year ago.

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

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