Dryness returning to southern plains

Market Line Oct. 17, 2011 Many areas of the drought plagued southern plains hard red winter wheat belt received good rains over the past week or so but Allen Motew of QT Weather for the Linn Group at the CME says that’s changing.

Motew: “Virtually no rainfall is seen for the next 12 to 16 days across western Oklahoma, central Texas and a good portion of southwest Kansas southward, right on through the Texas area.”

Friday wheat futures had small gains. A weaker dollar, higher equities and crude oil were cited. Weekly export sales for wheat were within trade expectations.

On Friday Chicago December wheat up 4 ¾ cents at 6-22 ¾. December corn up 1 ¾ cents at 6-40. Portland soft white wheat and club wheat steady to up three cents at mostly 6-16. Hard red winter 11.5 percent protein up seven cents at 7-72. DNS 14% protein up four cents at mostly 9-79.

Cattle futures closed higher Friday. Outside markets were said to provide support despite cash fed cattle selling lower than the previous week and weakness in boxed beef. Commentators noted the potential for increased beef sales to South Korea with Congressional passage of the free trade agreement. December live cattle up 35 cents at 123-20. November feeders up 97 at 144-42. November Class III milk down 36 cents at 17-02.

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

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