USDA report supportive to wheat
Market Line April 11, 2011 Wheat futures saw big gains Friday. Traders, who had expected an increase in U.S. wheat ending stocks in the USDA report, actually got a slightly lower number from the government. Traders were surprised that corn ending stocks were unchanged and USDA economist Joe Glauber says wheat was one reason for that. Glauber: “Soft red winter wheat price ratio with corn is now becoming very favorable and we think we will see more wheat enter into the total supply of feedstuffs for livestock.” And Chicago soft red led the gains in wheat Friday despite the fact USDA was talking about new crop feeding. A down side break out in the dollar was seen by traders as a reason to expect better U.S. wheat demand. On Friday Chicago May wheat up 24 ¼ cents at 7-97 ½. July new crop up 23 ¼ at 8-32 ¼. May corn up nine cents at 7-68. Portland soft white wheat a nickel higher at mostly $8.00. Club wheat premium at Portland mostly 25 cents. New crop August white wheat steady to a nickel higher at 7-85 to $8.00. Hard red winter 11.5 percent protein ten to twenty cents higher at 9-67. DNS 14% protein gained 12 to 22 cents at mostly 12-24. Profit taking continued to pressure cattle futures Friday. While early week live fed cattle sold higher, late week dressed basis sales were lower. Traders are expecting lower cash prices this week. June live cattle down 70 cents at 116-95. May feeders down 22 at 135-50. May Class III milk up 38 cents at 17-08. The XL Four Star Beef packing plant in Nampa, Idaho is shutting down June 7th. I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.
