Hot corn forecast helps wheat

Market Line July 13 , 2011 Wheat futures in Chicago and Kansas City had big gains Tuesday while Minneapolis contracts were mixed. The USDA numbers were seen as neutral to slightly bearish with U.S. wheat production slightly higher than expected at 2.1 billion bushels.

Wheat got support from corn which saw friendly USDA numbers on old and new crop carryout and from the weather outlook for corn. Dan Cekander of Newedge at the CME says forecasts are for very hot conditions for the central part of the corn belt.

Cekander: “If that is the case, we are going to stress corn during the critical pollination phase of development when a lot of the yield potential is being determined from a corn plant.”

USDA pegged spring wheat production at 551 million bushels but there are expectations that number will decline because of northern plains flooding problems.

On Tuesday Chicago September wheat up 32 ¾ cents at 6-72. September corn up 21 cents at 6-64. Portland soft white wheat and club wheat steady to 20 cents higher at mostly 6-70. New crop August white wheat steady to a nickel higher at 6-50 to 6-80. Hard red winter 11.5 percent protein up 22 cents at 7-68. DNS 14% protein down a penny at mostly 10-11.

Cattle futures were mixed Tuesday with feeder contracts feeling the pressure from sharply higher corn futures. There are worries that heat wave may damper grilling and beef demand. August live cattle down 67 cents at 114-02. August feeders down 132 at 142-02. August Class III milk down a nickel at 19-21.

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

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