Grain stocks and small grain report later this week

Market Line September 26, 2011 USDA will be issuing a quarterly grain stocks report this Friday as well as the Small Grains Summary which traders think will show lower production for spring wheat.

Friday wheat futures were higher on concerns over dryness in the U.S. southern plains, in Argentina and in the Ukraine. There was also said to be support from bargain hunting and the large short position of funds at Chicago.

On Friday Chicago December wheat up seven cents at 6-40 ¾. December corn down 11 ½ cents at 6-38 ½. Portland soft white wheat and club wheat for September mostly 6-30. Hard red winter 11.5 percent protein 7-76. DNS 14% protein up 31 cents at 9-51.

Cattle futures were mostly higher Friday ahead of the USDA’s Cattle on Feed Report which had a surprise in it. It was expected feedlot placements would be up in August but USDA‘s Shayle Shagum says that wasn‘t the case.

Shagum: “What we actually saw was a decline of about one percent for placements during August.”

Compared to August of last year. That put the feedlot inventory up five percent from August 2010. Marketings last month were up seven percent. On Friday December live cattle up 85 cents at 116-72. November feeders down 20 at 136-57. November Class III milk down 13 cents at 17-77.

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

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