USDA numbers and outside markets negative wheat

Market Line May 12, 2011 U.S. wheat futures tumbled Wednesday. Chicago led the losses as USDA’s estimate of soft red winter wheat production was way above trade expectations. The winter wheat estimate overall at 1.42 billion bushels was more than anticipated and so were new crop wheat ending stocks. A higher dollar and lower crude and corn only added to the pressure. Still, Al Kluis of Kluis Commodities thinks wheat’s down turn may be short lived.

Kluis: “Globally, unless we see some type of major turn around in the very near future in Europe that the S&Ds in wheat look very positive going forward. The most positive supply-demand table would be for the hard red spring wheat. The least favorable would be the soft red winter wheat.”

On Wednesday Chicago July wheat down 39 ¾ cents at 7-59. July corn down 30 cents at 6-77 ¼. Portland soft white wheat 15 to 20 cents lower at mostly 7-70. Club wheat premium at Portland mostly 13 cents. New crop August white wheat 15 to 20 cents lower at 7-60 to 7-80. Hard red winter 11.5 percent protein dropped 24 to 29 cents to 9-43. DNS 14% protein down 33 cents at 11-88.

Live cattle futures were mostly lower Wednesday with feeder contracts higher. Lower grain prices helped feeder contracts but analysts said live cattle were caught in a wide based sell off in commodities. Boxed beef was lower. June live cattle down 12 cents at 109-05. August feeders up 65 at 133-02. June Class III milk down 62 cents at 16-76 on lower butter and cheese prices

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

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