Wheat futures mixed; cattle higher

Market Line September 21, 2011 Wheat futures closed higher at Chicago and Minneapolis Tuesday, lower at Kansas City. And oversold market and more positive outside forces like a weaker dollar were cited as supportive.

Virginia McGathey of McGathey Commodities at the CME has this comment on wheat.

McGathey: “Right now wheat has become a feed instead of corn because it is a little bit cheaper. Certainly demand overseas has been a little bit lackluster and that has also kept the wheat going in lock step with what is going on in corn. Corn right now is also facing some seasonal pressure.”

USDA says 93 percent of the U.S. spring wheat crop has been harvested. It says 14 percent of the winter wheat crop has been planted. The five year average is 20 percent.

On Tuesday Chicago December wheat up 1 ¾ cents at 6-74 ¾. December corn down two cents at 6-90 ¼. No September Portland soft white wheat and club wheat bids. First half October bids were mixed at 6-60 to 6-77. Hard red winter 11.5 percent protein down three cents at 8-10. DNS 14% protein up a penny at 9-42.

Cattle futures were mostly higher Tuesday. Short covering was cited and there were thoughts Monday’s sell off was overdone. A better stock market also helped. Some cash fed cattle have traded a dollar lower than last week. Paraguay, a major beef exporter, has halted shipments due to a foot and mouth disease outbreak. October live cattle up 107 at 118-70. October feeders up 117 at 137-52. October Class III milk down 37 cents at 17-40.

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

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