More Black Sea competition

Market Line Oct. 10, 2011 Wheat futures were lower at Chicago and Kansas City Friday, higher at Minneapolis on tight protein wheat supplies.

James Barnett with Contrarians Dilemma at the CME says a big negative for wheat was news Ukraine is lifting export tariffs on wheat and corn.

Barnett: “That’s bearish. Makes their grain cheaper. It also underscores the stiff competition we have with Black Sea wheat out of Russia, Ukraine. Also Kazakhstan. That hangs over the market and certainly helped pressure the wheat market.”

The rain in the southern plains also pressured wheat.

On Wednesday USDA issues an updated supply and demand report for grains and production numbers for corn and soybeans.

On Friday Chicago December wheat down 8 ½ cents at 6-07 ½. December corn down 5 ½ cents at $6. Portland soft white wheat and club wheat up a nickel to down a nickel at mostly 6-30. Hard red winter 11.5 percent protein down 13 cents at 7-45. DNS 14% protein four to nine cents higher at mostly $10.

Cattle futures were mixed Friday. Cash fed cattle did trade a dollar higher on the week but packer margins are seen as poor which could limit future gains. Beef exports could exceed last year if the current pace keeps up. December live cattle down 55 cents at 121-85. November feeders up 77 at 142-35. Cheese prices were higher and November Class III milk up 66 cents at 17-87.

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

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