Pickup in wheat exports bullish; bearish cattle report

Market Line January 24, 2011 Double digit gains were posted by wheat futures Friday after a bullish weekly export sales report from the USDA. Reported sales were over 42 million bushels, well above trade expectations.

A lower dollar and reports of unrest over higher food prices provided support. Jordan is the latest country to report protests over food prices.

Bangladesh issued a tender for 50-thousand metric tons of wheat.

On Friday Chicago March wheat up 21 cents at 8-24 ¼. March corn up 3 ¼ cents at 6-57 ¼. Portland soft white wheat by rail only, steady to a nickel higher at mostly 7-88. Club wheat premium mostly 25 cents. New crop August white wheat steady at 7-50 to 7-80. Hard red winter 11.5 percent protein 14 cents higher at 8-90. DNS 14% protein up 17 cents at 10-97.

Cattle futures were mostly lower Friday ahead of the Cattle on Feed Report, which USDA livestock analyst Shale Shagum sums up.

Shagum: “On January 1 we had about 11.5 million head on feed which was about 5% above a year ago. During December producers placed about 1.8 million head of cattle, which was about 16% above 2010. During December feedlot operators marketed about 1.8 million head, which was 5% above 2010.”

Initial reaction to the report was bearish. Ahead of it February live cattle were down 70 cents at 107-95. March feeders down 75 at 125-55. February Class III milk up 59 cents at 15-93.

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

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