Weekly export inspections not great but wheat futures close higher

Market Line March 1, 2011 Wheat futures closed higher Monday with the hard wheats the strongest. Contracts had been lower on talk of better moisture in China and concern fund traders will liquidate more over Mid-East jitters. Weekly export inspections also came in under trade expectations at just under 20 million bushels. But weather still remains poor for the dry southern Plains, several countries are tendering for wheat and the Canadian Wheat Board put out a wheat production estimate for 2011 that was friendly.

As for China, Allen Motew of QT Weather for the Linn Group says dry areas have been getting rain for several days and may get more.

Motew: “Two of the three main models are indicating that precipitation will be coming back as soon as Friday and Saturday of this week. Looks like more on the southern side of the drought region.”

On Monday Chicago May wheat up 5 ¾ cents at 8-17. July new crop up 7 ¼ at 8-48 ¼. May corn up nine cents at 7-31. Portland soft white wheat steady to a nickel lower at mostly 7-58. Club wheat premium at Portland mostly 17 cents. New crop August white wheat steady to down a dime at 7-25 to 7-40. Hard red winter 11.5 percent mostly 9-26. DNS 14% protein mostly 11-90.

Cattle futures were mixed Monday with live contracts mostly lower and feeders higher. Live cattle were higher early on investor buying but profit taking set in as well as hedge selling. Cash feeders sold two to six dollars higher at Oklahoma City. April live cattle down 120 at 112-90. April feeders up 15 at 131-77. April Class III milk up 13 cents at 17-94.

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

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