Drought in Ukraine gets market's attention

Market Line Nov. 8, 2011 Wheat futures were higher at Chicago and Kansas City Monday, mostly lower at Minneapolis. Export inspections for wheat were well under trade expectations, but there was a lot of talk about dryness in the Ukraine impacting the 2012 winter wheat crop there. The figure of a 30 percent loss was mentioned.

Allen Motew of QT Weather for the Linn Group at the CME says a change in weather is coming for Ukraine.

Motew: “Where eastern areas will see some snowfall for midweek and that could be good news. The western part of the Ukraine eventually gets wet too as the south. So a change into the Ukraine as increased precipitation is seen over eastern and southern areas over the next two weeks.”

On Monday Chicago December wheat up two cents at 6-38 ¾. December corn down 2 ½ cents at 6-53 ¼. Portland soft white wheat and club wheat two to six cents higher at mostly 6-25. Hard red winter 11.5 percent protein mixed at 7-88. DNS 14% protein 8 to 13 cents lower at mostly 10-14.

Cattle futures were mostly lower Monday. The commentary mentioned pressure by cash market uncertainty this week given poor packer margins. Still, supplies of market ready cattle are expected to be tight. December live cattle down 110 at 123-40. January feeders down 62 cents at 146-77. December Class III milk up a penny at 18-23.

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

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