More long liquidation; cash fed cattle at record highs

Market Line February 25, 2011 Wheat futures had double digit losses Thursday. Commentators saw the selling as more long liquidation in commodities. Pressure also came from better weather in China and rain for the central and eastern winter wheat belt of the U.S.

Meanwhile, Allen Motew of QT Weather for the Linn Group says several weather systems over the next couple of weeks will add to the northern Plains and Canadian Prairie snow pack.

Motew: “Not heavy snows the way it looks but generally light nuisance snows that will keep the snow pack and actually increase it up that way and further cause the potential for record flooding come the spring.”

At the USDA Outlook Conference yesterday the 2011-2012 average farm price for wheat was forecast at a record $7.50 a bushel.

On Thursday Chicago March wheat down 15 ¾ cents at 7-47 ¼. March corn down 5 ¾ cents at 6-85 ¾. Portland soft white wheat by rail only, 15 to 25 cents lower at mostly 7-58. Club wheat premium at Portland 17 cents. New crop August white wheat ten to 30 cents lower at 7-15 to 7-40. Hard red winter 11.5 percent six to 17 cents lower at 8-81. DNS 14% protein higher by two to 14 cents at 11-38.

Live cattle futures were mixed with feeders higher Thursday. Live contracts got some support from reports of possible record high cash fed cattle prices of $1.12 a pound but high oil prices and the impact on the economy and beef demand provided pressure. April live cattle down 32 cents at 113-65. March feeders up 55 at 129-40. March Class III milk down two cents at 18-73.

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

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