Important USDA reports today; Australian floods and U.S. beef

Market Line January 12, 2011 Wheat futures were mostly lower Tuesday heading into reports this morning from USDA including supply and demand and planted winter wheat acres in the U.S. Additionally Gerry Bange, USDA Outlook Board Chairman, says the southern hemisphere will get a lot of attention.

Bange: “As far as Argentina and Brazil is concerned. We are looking there. South Africa. We are looking at that part of the world.”

On Tuesday USDA did report the sale of 155-thousand metric tons of U. S. wheat to unknown destinations. That total included 36.5 thousand metric tons of soft white wheat. Turkey also bought 260-thousand metric tons of wheat from the U.S.

On Tuesday Chicago March wheat down 7 ¾ cents at 7-59 ½. March corn unchanged at 6-07. Portland soft white wheat by rail only, still steady at mostly 7-65. Club wheat premium mostly 17 cents. New crop August white wheat mixed at 6-93 to 7-50. Hard red winter 11.5 percent protein down four cents at 8-28. DNS 14% protein steady at 10-20.

Cattle futures saw big gains Tuesday. Boxed beef prices were higher and traders think the flooding in Australia could send some of the Aussie’s beef export demand to the U.S. Wintry weather in the U.S. was also a factor.

February live cattle were up 150 at 108-45, a new all-time record high for a front month contract. March feeders up 187 at 125-30. February Class III milk up 53 cents at 14-92.