Wheat futures mixed and cattle contracts are stronger again

Market Line December 22, 2010 Wheat futures were lower at Chicago and Minneapolis Tuesday and narrowly mixed at Kansas City.

Traders said an improved harvest outlook in Australia along with reports that the quality of some harvested wheat may be better than expected provided pressure. Also Argentina has been seeing mostly dry weather for its harvest.

Brian Hoops of Midwest Market Solutions says to expect holiday type trading the rest of this week with the markets closed Friday.

Hoops: “We do expect to see this market chop around in here and not really have much direction through the holidays.”

On Tuesday Chicago March wheat down 4 ½ cents at 7-65. March corn up 2 ¾ cents at 6-02 ¼. Portland soft white wheat by rail only called steady at mostly 7-48. Club wheat premium mostly 17 cents. Only new crop red wheat bids at Portland with hard red winter 11.5 percent protein up a penny at 8-21 to 8-41 and August 14 percent DNS steady at 9-29 to 9-34.

Cattle futures put up good gains again Tuesday. Traders were encouraged by packer bids that are slightly higher than last week. Feeder contracts set new contract highs with the January contract at a record high. Analysts say forecasts for fewer cattle next year spurred fund buying. February live cattle up 57 cents at 105-80. January feeders up 62 at 121-35. January Class III milk up four cents at 13-16.

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

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