Export competition and outside forces take wheat futures down

Market Line Nov. 22, 2011 Wheat futures were lower Monday. Fund selling was cited with the lower stock market, European concerns and lack of a Congressional debt deal. Weekly export inspections were also below trade expectations and Mario Balleto with Citigroup Global Markets at the CME points to other negative export news.

Balleto: “Last week in the corn we were seeing deep discounts from Australian and Black Sea wheat taking away feed demand from corn and then the wheat market is facing competition with Egypt again over the weekend buying Russian, Ukrainian and Kazakhstan wheat and buying no U.S. wheat.”

On Monday Chicago December wheat down 6 ¾ cents at 5-91 ½. December corn down 12 ½ cents at 5-97 ¾. Portland soft white wheat and club wheat steady to a dime lower at mostly 5-83. Hard red winter 11.5 percent protein down a penny at 7-28. DNS 14% protein mixed at mostly 9-98.

Live cattle futures were mixed Monday with feeders lower. There was pressure from outside markets but analysts say futures discount to the cash market provided support. The Cattle on Feed Report issued Friday was viewed as neutral to slightly friendly. December live cattle up 27 cents at 119-97. January feeders down 125 at 146-17. December Class III milk up 38 cents at 18-65.

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