Cold may threaten Plains wheat

Market Line December 30, 2010 Wheat futures where slightly higher at Chicago Wednesday but lower at Kansas City and Minneapolis.

There was pressure from drier weather for harvest in Australia. Seventy-five percent of the crop has been harvested down under. About ten million metric tons of an estimated crop of 24.4 million is expected to be down graded.

Analysts said there was also pressure from ideas snow will come ahead of sub-zero temperatures for winter wheat in the central plains, but Allen Motew of 2T Weather for the Linn Group, says the latest models now show no snow may hit bare areas.

Motew: “This could cause substantial damage and winter kill to winter wheat in a good portion Kansas, Nebraska, and Colorado particularly, and even into the Oklahoma Panhandle.”

On Wednesday Chicago March wheat up a penny at 7-99 ¼. March corn up ¾ of a cent at 6-24. Portland soft white wheat by rail only, five to ten cents lower at mostly 7-57. Club wheat premium mostly 17 cents. New crop August white wheat nine to ten cents lower at 7-10 to 7-25. Only new crop red wheat bids at Portland with hard red winter 11.5 percent protein down two cents at 8-52 to 8-72. August 14% DNS down three cents at 9-52 to 9-57.

Cattle futures were mostly higher Wednesday. There were some cash fed cattle trades reported 107 dollars in Texas, which may be the third highest ever recorded there. February live cattle up 45 cents at 108-25. March feeders up 62 qt 124-07. February Class III milk up 24 cents at 13-64.