Wheat futures lower again; cattle higher

Market Line February 17, 2011 Kansas City and Minneapolis wheat futures had double digit losses Wednesday, Chicago contracts less so. A 120-thousand metric ton sale of U.S. soft red winter wheat to Egypt helped Chicago contracts. Bangladesh purchased 150-thousand metric tons of wheat from Brazil.

Long liquidation was cited as putting pressure on wheat futures as was talk of better moisture for parts of the U.S. winter wheat growing areas. But Allen Motew of QT Weather for the Linn Group still doesn’t see much relief for the driest areas of the Plains.

Motew: “We just don’t any precipitation to speak of crossing the region. That is anywhere from southwest Nebraska all the way through west Texas.”

And more storms are likely to add to the northern Plains snow pack.

On Wednesday Chicago March wheat down 3 ¼ cents at 8-37. March corn unchanged at 6-90 ½. Portland soft white wheat by rail only, 20 to 25 cents lower at mostly 8-33. Club wheat premium at Portland mostly 17 cents. New crop August white wheat five to 15 cents lower at 8-25 to 8-35. Hard red winter 11.5 percent down four cents to up a penny at 9-43. No spot DNS bids. New crop 14% protein was lower at 10-64 to 10-84.

Cattle futures were mostly higher Wednesday. Gains in boxed beef has traders expecting higher fed cash cattle prices this week. Traders are also positioning ahead of Friday’s Cattle on Feed report. April live cattle up 40 cents at 114-17. March feeders up 195 at 130-47. March Class III milk up 17 cents at 18-94.

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

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