Wheat futures start higher, close lower

Market Line May 3, 2011 Wheat futures were mostly lower Monday. A break in the dollar, higher oil and gold prices and the export inspection report sent contracts higher in initial trading but profit taking set in and there was some thought the hard red winter wheat crop might be in better condition than expected. Actually, after the close USDA dropped the good to excellent rating another point from last week and increased the very poor to poor by one point. U.S. spring wheat planting is only ten percent complete compared to 43 percent for the five year average. Allen Motew of QT Weather for the Linn Group sees continued moisture causing problems both in the U.S. and Canada.

Motew: We have rains that will continue across the Canadian Prairie so we have issues in that region with too wet continuing across the northern plains.”

On Monday Chicago wheat down 9 ½ cents at 7-91 ¾. July corn down 22 cents at 7-34 ½. Portland soft white wheat steady at 7-76. Club wheat premium at Portland mostly 13 cents. New crop August white wheat steady to a nickel higher at 7-70- to 7-95. Hard red winter 11.5 percent protein mostly 9-26. DNS 14% protein mostly 12-19.

Cattle futures were mostly lower Monday. Concern remains about beef demand with poor grilling weather in parts of the nation and expectations that supplies of market ready cattle will be increasing this month and next. June live cattle down 140 at 111-95. August feeders down 112 at 134-82. June Class III milk up six cents at 17-39.

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

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