Report Day

Market Line July 12, 2011 Traders will be digesting USDA’s crop production and revised supply and demand reports this morning and we will see if any numbers in those are market movers.

Heading into the reports Monday wheat futures were lower with Minneapolis posting the biggest losses. The European debt situation and the resulting strong dollar were negatives along with India announcing it would export wheat. Jerrod Kitt of the Linn Group says there were some positive developments too.

Kitt: “Over the weekend we saw a lot of wheat business. Saudi Arabia and Jordan all moved for wheat. Some U.S. origin was included. In addition to that we had persisting support from last week over Chinese corn buying. Again the rumor is maybe seven to eight million metric tons total across all countries in the world.”

On Monday Chicago September wheat down 12 cents at 6-39. September corn up ¾ of a cent at 6-43. Portland soft white wheat and club wheat steady to 15 cents lower at mostly 6-60. New crop August white wheat steady at 6-50 to 6-75. Hard red winter 11.5 percent protein eleven to 16 cents lower at 7-45. DNS 14% protein down 23 cents at mostly 10-12.

Cattle futures were mixed Monday as the complex also felt the pressure of a lower equity market and European debt concerns. Cattle got some spillover support from hogs on rumors of a large U.S. pork purchase by China. Feedlot show lists are expected to be larger this week. August live cattle up a nickel at 114-70. August feeders down 25 at 143-35. August Class III milk up a dime at 19-26.

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

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