Anticipation of exports helps wheat futures; Cattle on Feed Report pressures futures

Market Line January 25, 2011 Wheat futures put in double digit gains Monday with some new contract highs. The weekly export inspection report was said to be at the low end of expectations at about 23 million bushels but thoughts exports will be picking up provided support.

That dryness in China’s winter wheat belt was mentioned again yesterday. Allen Motew of QT Weather for the Linn Group sums up other key weather items.

Motew: “So I think the biggest highlight is the rain again we are going to see in Argentina and the possibility of a weak number two storm affecting the hard red winter wheat belt and the continuation of a deep snow pack across the northern Plains.”

On Monday Chicago March wheat up 10 ¾ cents at 8-35 ¼. March corn down two cents at 6-55 ¼. Portland soft white wheat by rail only steady to 20 cents higher at mostly $8. Club wheat premium mostly 17 cents at Portland. New crop August white wheat up 25 cents at 7-75 to 8-05. Hard red winter 11.5 percent protein up eight cents at 8-98. DNS 14% protein 13 cents higher at 11-10.

Cattle futures were steady to lower Monday. The bearish placement number in last Friday’s Cattle on Feed Report was cited. Many were heavier weight animals that will hit the market in early summer. A big increase in chicken in the cold storage report was also seen as negative. February live cattle down 117 at 106-77. March feeders unchanged at 125-55. February Class III milk up 56 cents at 16-49.

Now this.