Report pressure continued on wheat

Market Line Oct. 14, 2011 Wheat futures put in more losses Thursday as the bearish reaction continued to USDA’s U.S. wheat carryover projection issued Wednesday. It was higher than traders anticipated. A firm dollar added pressure.

The U.S. faces stiff wheat export competition and as USDA Chief Economist Joe Glauber points out, there is a lot of wheat in the world this year.

Glauber: “Almost every month we have upped the forecast for world wheat production. We are now forecasting some 681-million tons. That is the third highest on record and only three million off the record.”

USDA’s weekly export sales report delayed by Monday’s holiday will be out this morning.

On Thursday Chicago December wheat down 8 ¾ cents at 6-18. December corn down 2 ½ cents at 6-38 ¼. Portland soft white wheat and club wheat down ten to 13 cents at mostly 6-14. Hard red winter 11.5 percent protein down a dime at 7-65. DNS 14% protein 16 to 21 cents lower at 9-75.

Cattle futures were higher Thursday despite some cash fed sales reported at one to two dollars lower than last week. USDA’s supply and demand report this week was seen as bullish for production and exports. December live cattle up 162 at 122-85. November feeders up 12 cents at 143-45. November Class III milk up 41 cents at 17-38.

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

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