Bad outweighs good in USDA reports

Market Line Oct. 3, 2011 The question coming out of the USDA reports issued Friday was, what are cattle eating? USDA’s stocks report indicated less corn and wheat feeding than traders expected. That sent some corn futures limit down and wheat fell with it, though Minneapolis contracts didn’t lose as much. That probably had to do with USDA pegging the spring wheat crop smaller than expected. Department chief economist Joe Glauber has the production.

Glauber: “So we are estimating spring wheat numbers at around 462-million.”

Down 25 percent from last year.

A higher dollar and continued global economic concerns were added negatives for wheat. This week the market will get a wheat production report from Canada.

On Friday Chicago December wheat down 45 cents at 6-09 ¼. December corn limit down 40 cents at 5-92 ¼. First half October Portland soft white wheat and club wheat ten to 30 cents lower at mostly 6-08. Hard red winter 11.5 percent protein down 36 cents at 6-59. DNS 14% protein 16 to 24 cents lower at 9-99.

Live cattle futures were mixed Friday with feeders mostly higher. Cash fed cattle sales of 121 helped front month live cattle while more deferred months were pressured by lower corn. December live cattle up 140 at 122-65. November feeders up 102 at 142-92. November Class III milk down 57 cents at 16-41.

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

Now this.