Plains moisture pressures wheat futures

Market Line Oct. 7, 2011 Wheat futures were mixed Thursday with Chicago and Kansas City lower and Minneapolis higher. Tight supplies of high protein wheat were cited at Minneapolis. The other markets were said to be pressured by good rains coming for the southern U.S. plains. Allen Motew of QT Weather for the Linn Group at the CME says the extremely dry areas could get three to five inches of moisture. And there is the chance for more.

Motew: “Extremely good news with the back end of this system still showing another round of precipitation anywhere from southwest Texas back up into Kansas. Right in the heart of the red wheat belt and that would be for Tuesday, Wednesday, Thursday of next week.”

The weekly export sales report for wheat came in at 15.8 million bushels, in line with trade expectations.

On Thursday Chicago December wheat down 9 ¼ cents at 6-16. December corn unchanged at 6-05 ½. Portland soft white wheat and club wheat five to ten cents higher at mostly 6-30. Hard red winter 11.5 percent protein down two cents at 7-58. DNS 14% protein up nine cents at mostly 9-94.

Cattle futures were mixed Thursday with profit taking cited. The cash fed market was called firm but concerns remain about the future of beef demand. Weekly export sales for beef were down a little from the four-week average.

December live cattle down 25 cents at 122-40. November feeders down 17 at 141-57. November Class III milk up 14 cents at 17-21.

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

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