Export sales disappoint

Market Line February 4, 2011 Wheat futures saw modest losses Thursday with the largest decline at Minneapolis. March wheat at Chicago did post a new high but then reversed which is seen as a short term technical negative.

The weekly export sales report was under trade expectations at 19.6 million bushels.

There was some trade talk that Egypt may need to increase their wheat imports. Mike Krueger of M-K Commodities says whoever ends up ruling the country will have to feed the people.

Krueger: “But it doesn’t mean they won‘t be disrupted for a time. You have to have credible enough entity to open a letter of credit and make shipments happen and make new purchases. That has caused some nervousness generally.”

Stats Canada issues a grain stocks report today.

On Thursday Chicago March wheat down four cents at 8-59.

March corn down 6 ¾ cents at 6-62 ½. Portland soft white wheat by rail only, steady to 25 cents higher at mostly 8-53. Club wheat premium at Portland mostly 17 cents. New crop August white wheat 10 to 15 cents higher at 8-15 to 8-40. Hard red winter 11.5 percent down four cents at 9-37. DNS 14% protein down 11 cents at 11-71.

Cattle futures were mixed Thursday. Some cash fed cattle started selling prior to the close at 106. Beef cutouts were mixed and traders felt beef demand would be hurt by snowed in consumers. April live cattle down 32 cents at 113-20. March feeders down 30 at 125-50. March Class III milk up 33 cents at 18-37.

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