Bearish wheat numbers from USDA

Market Line September 13, 2011 Wheat futures closed lower Monday but up from the day’s lows as USDA surprised traders with its supply and demand report. Instead of lowering U.S. wheat ending stocks they were raised and world wheat ending stocks were up as well. U.S. ending stocks are now pegged at 761 million bushels.

Corn gave wheat futures some help as USDA chief economist Joe Glauber says corn production was trimmed three percent from last month’s forecast on lower yields.

Glauber: “Interesting, I think this is the second year in a row we have had yields below trend and that just doesn‘t happen very often.”

Weekly export inspections for wheat were 15.7 million bushels, well below trade expectations.

USDA says 83 percent of the U.S. spring wheat crop has now been harvested, a few points behind average.

On Monday Chicago December wheat down 2 ½ cents at 7-27 ¼. December corn up nine cents at 7-45 ½. Portland soft white wheat and club wheat for last half September three to five cents lower at mostly 7-06. Hard red winter 11.5 percent protein down seven cents at 8-64. DNS 14% protein down a nickel at 9-93.

Cattle futures were higher Monday. Higher corn was said to be supportive to 2012 live cattle contracts. There was carry over optimism from last week’s cash fed cattle prices and boxed beef was higher yesterday. October live cattle up 95 cents at 119-40. October feeders up 67 cents at 135-52. October Class III milk up 28 cents at 18-55.

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

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