Wheat and cattle futures up after USDA reports

Market Line August 12, 2011 Wheat futures had strong gains Thursday. USDA numbers on wheat were seen as mostly neutral but higher corn, based on reduced yield prospects, helped wheat. Total U.S. wheat production was put at 2.08 billion bushels. Spring wheat acreage was reduced due to the problems at planting with hard red spring wheat production down 17 percent from 2010.

Jack Scoville with Price Futures Group says the supply and demand numbers suggest wheat doesn’t need to move up but he sees some potential for higher futures.

Scoville: “Here in Chicago you could probably see wheat move back to the $8 to $8.50 range, especially if gone has to go there as well.”

On Thursday Chicago September wheat up 16 ¼ cents at 7-01 ¼. September corn up 24 ½ cents at 7-02 ½. Portland soft white wheat and club wheat ten to fifteen cents higher at mostly 7-10. Hard red winter 11.5 percent protein 23 to 26 cents higher at mostly 8-47. DNS 14% protein 11 to 26 cents higher at 9-84.

Cattle futures posted triple digit gains Thursday. Expectations of higher cash fed cattle this week, the higher stock market and sharply higher grain prices were cited as reasons. Traders see higher corn prices leading to lighter cattle weights. October live cattle up 207 at 119-52. October feeders up 142 at 137-32. September Class III milk limit down 75 cents at 19-12 on a drop in cheese prices.

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

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