La Nina is back

Market Line September 15, 2011 Wheat futures were mixed Wednesday with Chicago contracts posting the only gains. Short covering and September contract expiration were cited as factors in trading there.

Egypt purchased 420-thousand metric tons of wheat from Russia.

USDA meteorologist Brad Rippey says the National Weather Service has declared that La Nina is back and that bodes ill for winter wheat in the southern plains, particularly Texas.

Rippey: “And the rain that is expected to fall in the next week or so in Texas and surrounding areas of the south central United States may be enough for some producers to consider getting out and planting the winter wheat crop, but if dry weather returns as expected later in September and October, that could be putting us in a situation like last year where the crop started to grow but then eventually just wilted under unrelenting dryness that developed in the fall of 2010.”

On Wednesday Chicago December wheat up 2 ¼ cents at 7-04 ½. December corn up 1 ¼ cents at 7-24 ¼. Portland soft white wheat and club wheat for September mostly 6-88. Hard red winter 11.5 percent protein down six to 11 cents at 8-37. DNS 14% protein seven to 12 cents lower at mostly 9-58.

Cattle futures had big gains Wednesday. Strengthening beef demand was given the credit by analysts which traders see as bringing higher cash fed cattle prices this week. October live cattle up 140 at 121. October feeders up 192 at 138-95. October Class III milk down 42 cents at 18-50.

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

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