Weather negative wheat; cattle bounce higher

Market Line April 28, 2011 Wheat future put in losses of over 30 cents a bushel Wednesday. Improvements in weather for various areas around the world along with long liquidation were cited as factors. Virginia McGathey of McGathey Commodities at the CME says it seemed the market was a little exhausted yesterday.

McGathey: “Some of the traders now are trying to cut back on their risk exposure and so far the wheat has really topped out at $8.64.”

Jordan rejected all offers on a 100-thousand metric ton tender. Saudi Arabia did buy 275-thousand metric tons from the U.S., Canada and Germany. A sale of 100-thousand metric tons of U.S. hard red winter wheat to unknown destinations was announced for next marketing year.

On Wednesday Chicago July wheat down 35 cents at 8-12. July corn down 13 ½ cents at 7-59 ¼. Portland soft white wheat for May five to 25 cents lower at 7-85 to 8-05. No Portland club wheat bid. New crop August white wheat 15 to 20 cents lower at 7-85 to 8-05. Hard red winter 11.5 percent protein down 38 cents at 9-53. DNS 14% protein down 28 cents at mostly 12-28.

Cattle futures closed sharply higher Wednesday in what analysts called a short covering bounce after several days of losses. The discount of nearby June live cattle to the cash market was also seen as positive. June live cattle up 125 at 113-55. August feeders up 190 at 134-85. June Class III milk up 21 cents at 17-39.

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

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