USDA corn numbers help wheat; hurt feeder cattle

Market Line February 10, 2011 USDA supply and demand numbers for wheat were pretty much unchanged yesterday and seen as neutral but a bullish report for corn helped wheat futures post more double digit gains. USDA economist Joe Glauber explains what happened with corn.

Glauber: “We are bringing down ending stocks to 675 million bushels. That is quite low. I mean that is under 20 days of use, the lowest stocks-to-use ration since the mid 1990s.”

A lower dollar and higher internal wheat prices in China added to the positive note for wheat. Chinese officials have begun expressing concern about their winter wheat crop.

On Wednesday Chicago March wheat up 11 ¾ cents at 8-86. March corn up 24 ¼ cents at 6-98. Portland soft white wheat by rail only, steady to a dime higher at mostly 8-62. Club wheat premium at Portland 17 cents. New crop August white wheat steady to 25 cents higher at 8-50 to 8-75. Hard red winter 11.5 percent 16 to 21 cents higher at mostly 9-91. DNS 14% protein up 17 cents at 12-07.

Live cattle futures were mixed Wednesday with feeders posting losses. Traders were concerned about beef prices. The sharp gains in corn futures were negative for feeder cattle contracts. April live cattle up two cents at 11-27. March feeders down 132 at 122-92. March Class III milk down six cents at 18-55.

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

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