Aussie-China deal proves negative for wheat futures

Market Line Oct. 26, 2011 Wheat futures were mixed Tuesday. A firm U.S. dollar and the lower stock market were cited as factors. So are demand concerns for U.S. wheat. Parker McMahan with LaSalle Street News at the CME explains.

McMahan: “The wheat market was under pressure from what has been coined as “cheap wheat”, Australian wheat sold to China. As well as being cheaper than expected there was also better quality production than had been expected.”

After the close Egypt announced a wheat tender. The Ukraine will now also be competing for that business.

Dryness in the southern plains continues to provide underlying support for wheat futures.

On Tuesday Chicago December wheat down 6 ¼ cents at 6-36 ¼. December corn down ¼ cent at 6-50 ¾. Portland soft white wheat and club wheat steady at mostly 6-32. Hard red winter 11.5 percent protein mixed at mostly 8-02. DNS 14% protein up a penny at 10-02.

Cattle futures were mostly lower Tuesday. The lower stock market pressured contracts and so did a report on low consumer confidence and what that might mean for beef demand. Traders are unsure of what direction the cash fed market will go this week. December live cattle down 90 cents at 121-97. November feeders down a dollar at 141-80. November Class III milk down 27 cents at 17-60.

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

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