Consolidation

Market Line Oct. 31, 2011 Wheat futures had modest gains Friday. Outside markets were negative for grains but buying emerged for corn and wheat.

James Barnett, with Contrarian’s Dilemma at the CME says the U.S. just faces tough export market competition for wheat.

Barnett: “We have a lot of competition from Ukraine, the Black Sea, Europe, Australia. But we have a big net fund short in Chicago and we have broken pretty hard over the past several weeks and there is a tendency for a little consolidation and a bounce here in wheat. We saw it at least going along for the ride with the corn market.”

Dry conditions in Ukraine this fall have caused the poor rating of its winter wheat to increase to 39 percent of the crop.

Some analysts note that the late row crop harvest in the eastern corn belt may mean less soft red winter wheat acres.

On Friday Chicago December wheat up a half cent at 6-44 ½. December corn up 3 ½ cents at 6-55. Portland soft white wheat and club wheat steady to three cents higher at mostly 6-32. Hard red winter 11.5 percent protein steady to a nickel lower at 8-05. No Portland DNS bids.

Cattle futures were mixed Friday. Deferred live cattle were said to be pressured by concern about high beef prices on consumer demand. Texas cash fed cattle traded steady to two dollars higher giving traders some optimism about cash prices this week. December live cattle down 85 cents at 118-05. January feeders down 35 at 145-60. December Class III milk up 17 cents at 17-62.

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

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