Wheat futures mixed; cash markets pressure cattle contracts

Market Line May 20, 2011 Wheat futures were mixed Thursday with Chicago the weakest market. Profit taking across commodities was cited while weather continued to provide support for wheat. Weekly export sales for wheat were called better than expected.

On the weather front QT Weather meteorologist Allen Motew sums up the outlook for what have been problem areas.

Motew: “We have improving conditions after the next five days across the Canadian prairie, the northern plains. We have improving conditions with additional moisture for Oklahoma and Kansas coming up here not only in the near term but extending it out to a week to 14-days. And we have further heavy rains across the eastern corn belt. That is not good news.”

On Thursday Chicago July wheat down a nickel at 8-12. July corn down 1 ½ cents at 7-48 ¼. Portland soft white wheat five to ten cents higher but mostly $8. Club wheat at Portland mostly $8. New crop August white wheat ten to 40 cents higher at $8 to 8-10. Hard red winter 11.5 percent protein seven cents higher at 9-90. DNS 14% protein ten to 30 cents higher at 12-56.

Cattle futures were mostly lower Thursday. Live fed cattle sales were three to four dollars lower than last week. Boxed beef was also lower. Demand remains a concern. Positioning ahead of this afternoons Cattle on Feed report was noted. June live cattle down 140 at 104-85. August feeders down 135 at 126-65. June Class III milk up 24 cents at 17-66.

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

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