Wheat futures down hard ahead of USDA report while live cattle at all-time record high

Market Line March 10, 2011 Wheat futures put in more big losses Wednesday as longs continued to liquidate the grains though there was some buying at the end of the session.

Joe Vaclalik from MF Global at Chicago doesn’t see this week’s action as a sell off but a digestive trade.

Vaclalik: “You know really still within what‘s been the trading range the past month or so. We are just not going anywhere really fast. There is not a lot of new fundamental news out.”

This morning traders get a monthly supply and demand update from USDA, which may or may not impact the market as well as an export sales report.

On Wednesday Chicago May wheat down 21 cents at 7-58 ¾. July new crop down 20 ½ at 7-91. May corn down 4 ½ cents at 7-01. Portland soft white wheat at mostly 7-58 with no price comparison. Club wheat premium at Portland mostly 17 cents. New crop August white wheat 20 to 30 cents lower at 7-50 to 7-60. Hard red winter 11.5 percent 20 cents lower at mostly 8-71. DNS 14% protein down 18 cents at 11-70.

April and June live cattle contracts closed at all-time record highs Wednesday. Boxed beef was higher and some fed cattle sales of 118 dollars were reported, also record high. There were reports of feedlots sending under finished cattle to market. Feeders followed live cattle and got added support from lower corn. April live cattle up 272 at 117-52. April feeders up 137 at 134-52. April Class III milk up 29 cents at 18-25 on support from an unchanged cheese market.

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

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