Better weather bearish for wheat futures

Market Line May 13, 2011 Wheat futures continued their heavy losses Thursday. Rains for dry Europe and more chances of moisture for the U.S. southern plains were negative. And Allen Motew with QT Weather for the Linn Group says there is a better outlook for spring wheat planting.

Motew: “We have drying seen and warming seen across the Canadian Prairie, across western North Dakota, the Montana area. All those areas should see approximately 7-10 days of drying.”

USDA’s weekly export sales report for wheat fell within trade expectations.

The USDA is forecasting a record wheat crop in Egypt which could drop their import needs this coming year.

On Thursday Chicago July wheat down 23 ½ cents at 7-35 ½. July corn up 3 1/4 cents at 6-80 ½. Portland soft white wheat 15 to 30 cents lower at mostly 7-50. Club wheat at Portland also 7-50. New crop August white wheat down a dime at 7-50 to 7-70. Hard red winter 11.5 percent protein down 24 cents at 9-19. DNS 14% protein 21 to 56 cents lower at 11-55.

Cattle futures were mostly higher Thursday. Cash fed cattle sales of three dollars lower than last week and lower boxed beef did provide some pressure. On the positive side traders see better grilling weather and export demand remains strong. June live cattle up 80 cents at 109-85. August feeders up 90 at 133-92. June Class III milk up 20 cents at 16-96.

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

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