India expecting another record wheat crop

Market Line March 4, 2011 Wheat futures were higher Thursday despite a weekly export sales report that came in under trade expectations. Sales however are still running at a pace to meet USDA export projections.

Traders focused on the drought in the southwestern Plains hard red winter wheat belt where forecasts through next week call for dry and windy weather. Weakness in the dollar was also supportive.

India will begin its wheat harvest next month and USDA Ag Attaches there say the country is likely to harvest a fourth successive record crop. Limited storage could lead India to again export wheat.

On Thursday Chicago May wheat up 12 ¼ cents at 8-23 ½. July new crop up 13 ¼ at 8-53. May corn up 15 ¼ cents at 7-36 ¾. Portland soft white wheat steady to a nickel higher at mostly 7-75. Club wheat premium at Portland mostly 17 cents. New crop August white wheat five to 15 cents higher at 7-85 to $8. Hard red winter 11.5 percent eight cents higher at 8-35. DNS 14% protein 11 to 32 cents higher at 12-08.

Cattle futures closed higher Thursday with record or near record high cash fed sales of 112 and 113 dollars a hundredweight reported. Strong beef exports year-to-date and a higher stock market also helped cattle contracts. Feeders followed live futures. April live cattle up $2 at 114-20. April feeders up 67 at 132-07. April Class III milk up 23 cents at 18-30.

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

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