Good rain headed for plains

Market Line Oct. 5, 2011 Wheat futures closed lower Tuesday getting outside pressure from lower energy and stocks and a higher dollar. The forecast models are also calling for some good rains in the southern U.S hard red winter wheat belt. Allen Motew of QT Weather for the Linn Group has the details on what one model is showing.

Motew: “The rains from three to five inches will fall in the vicinity of Salina, Kansas, down toward Abilene, Texas, right in the heart of the hard red wheat belt. We could see some six inch totals and if the model is correct as much as nine to ten inches.”

Canada’s report on its wheat production this year offered some support to the market. Canadian wheat production is up 4.3 percent from last year but that was below trade expectations.

On Tuesday Chicago December wheat down 15 ½ cents at 6-04. December corn down 4 ¾ cents at 5-87 ¾. Portland soft white wheat and club wheat were mixed at mostly 6-10. Hard red winter 11.5 percent protein down 15 cents at 7-43. DNS 14% protein down 15 at 9-74.

After hitting some record highs Monday cattle futures closed lower Tuesday with commentary pointing to an overbought market and profit taking. The lower stock market didn’t help. Traders are still waiting for the cash trade. December live cattle down 177 at 121-55. November feeders down 195 at 140-90. November Class III milk up 54 cents at 16-72.

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

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