Wheat and cattle futures mixed

Market Line February 2, 2011 Wheat futures closed lower at Chicago and Kansas City Tuesday but higher in Minneapolis. Support came from concerns about winterkill in the Plains. Kansas and Texas also reported increases in the very poor to poor ratings for their winter wheat crops from a month ago. That could lead to wheat being taken out in favor of row crops in the spring.

Lynn Smith with the Zaner Group at the Chicago Board of Trade says traders remained nervous about the unrest in Egypt, which is the largest wheat importer.

Smith: “I think it is going to work out. It is a little bit early to tell how things will resolve in Egypt but they are still going to need the wheat so the question is where are they going to get it from if they don‘t get it from us. I don‘t think they have much of a choice.”

On Tuesday Chicago March wheat down a nickel at 8-35 ¾. March corn up 6 ½ cents at 6-66. Portland soft white wheat by rail only, steady to a nickel higher at mostly 8-30. Club wheat premium at Portland mostly 17 cents. New crop August white wheat up a nickel to down 40 cents at 8-15. Hard red winter 11.5 percent protein down a penny at 9-20. DNS 14% protein up a penny at 11-53.

Cattle futures were mixed on Tuesday. Cold, wintry weather in the Plains was price supportive but a sell off in hogs spilled over to pressure cattle contracts. Profit taking was also cited. April live cattle up 60 cents at 114-65. March feeders down 52 at 127-47. March Class III milk up 25 cents at 18-44.

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

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