Japanese uncertainty negative for grains

Market Line March 14, 2011 Wheat futures continued their downward path Friday. Follow through selling from the USDA report was compounded by the uncertainty about near-term Japanese demand in the wake of the massive earthquake and tsunami. The U.S. Grains Council representative in Japan reported four ports in northern Japan were hit by the tsunami but there were no details on damage. Japan is the number two customer for U.S. wheat and the number one importer of U.S. corn.

Despite all the negativity Chris Robinson with Top Third Ag Marketing at the Chicago Board of Trade thought wheat actually did okay Friday.

Robinson: “The wheat came back off of its lows, a good 20 cents off its lows. So, we saw some end-users coming in there and buying.”

On Friday Chicago May wheat down 21 ¾ cents at 7-18 ¾. July new crop down 21 ¾ at 7-50 ¾. May corn down 18 ½ cents at 6-64 ¼. Portland soft white wheat bids were not well tested Friday afternoon but were down 25 to 30 cents at mostly 7-13. Club wheat premium at Portland mostly 17 cents. New crop August white wheat five to 25 cents lower at 7-10 to 7-45. Hard red winter 11.5 percent down 14 cents at 8-43. DNS 14% protein lower by 19 cents at 11-26.

Japan is a major importer of U.S. beef so the earthquake there pressured live cattle futures lower Friday as did profit taking. Lower corn helped feeder cattle close higher. April live cattle down 52 cents at 117-12. April feeders up 32 cents at 134-52. April Class III milk down 46 cents at 17-41.

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

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