Wheat feed imports? Australian competition

Market Line Nov. 14, 2011 Wheat futures were mixed Friday. Outside markets were friendly but there are concerns about the pace of U.S. exports and the competition the U.S. faces in the world market. Reports suggested Australian wheat is 20 dollars a ton cheaper than U.S. soft white into Indonesia.

James Barnett with A Contrarian’s Dilemma at the CME has more on export competition.

Barnett: “We even heard stories of British wheat being imported into the U.S. Just one cargo but it underscores the competition globally for wheat.”

That British wheat would be coming in for feed use.

On Friday Chicago December wheat down 3 ¼ cents at 6-16 ¾. December corn down seven cents at 6-38 ½. Portland soft white wheat and club wheat five to 16 cents lower at mostly 6-10. Hard red winter 11.5 percent protein seven to 12 cents higher at 7-67. DNS 14% protein up four to nine cents at 10-20.

Cash fed cattle sold from 124 to 127 last week setting a new record high but live cattle futures posted losses Friday. The upcoming holiday season and its impact on beef demand was mentioned while one commentator said something other than fundamentals were at work. Maybe money being moved around. December live cattle down 105 at 120-55. January feeders unchanged at 145-67. December Class III milk up 39 cents at 18-75 as cheese prices move higher.

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