Wheat starts new year higher while cattle futures drop

Market Line January 4, 2010 Wheat futures had some double digit gains Monday. This despite a very disappointing weekly export inspection report of only 10.3 million bushels. Support came from concern about the hard red winter wheat crop and the stress it is under from dryness and what may be another blast of cold air into next week.

Flooding in Australia was also cited but USDA meteorologist Harlan Shannon says that’s not in the prime winter wheat areas.

Shannon: “A lot of the rain is falling across Queensland, which is a major summer crop area and right on the northern fringe of the winter wheat areas. Areas to the south such as New South Wales, Victoria and South Australia are major winter grain producing areas and are actually catching a break right now. They are escaping from the rain.”

On Monday Chicago March wheat up 11 ¼ cents at 8-05 ½. March corn down 8 ½ cents at 6-20 ½. Portland soft white wheat by rail only, steady to a nickel higher at mostly 7-65. Club wheat premium mostly 17 cents. New crop August white wheat five to 16 cents higher at 7-23 to 7-30. Hard red winter 11.5 percent protein for January 8-53. DNS 14 percent protein for January at 10-39.

Cattle futures started the new year with losses. Profit taking and modifications in portfolios were two main reasons cited. Boxed beef was higher. Lower corn lessened feeder contract losses. February live cattle down 137 at 106-97. March feeders down 92 at 123-02. February Class III milk down seven cents at 13-65.

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

Now this.