News from Ukraine takes wheat futures up

Market Line December 5, 2011 USDA will issue the December supply and demand report for grains this Friday. There will be no production changes.

Friday wheat futures put in mostly double digit gains. Jack Scoville with Price Futures Group at the CME says news from Ukraine was a factor.

Scoville: “The Ukrainian Ag Minister noting how dry it had been all fall and that the drought was continuing and said that wheat production which had been about 22 million tons in the past season, could be ten million tons or less, in fact as low as eight million tons in the growing season coming later on this year.”

Outside markets and short-covering were also seen as positives.

On Friday Chicago March wheat up 11 ¼ cents at 6-25 ½. March corn down 6 ¼ cents at 5-95 ¼. Portland soft white wheat and club wheat steady to a nickel higher at mostly $6. Hard red winter 11.5 percent protein thirteen to 18 cents higher at 7-35. DNS 14% protein up 13 to 28 cents at mostly 9-85.

Cattle futures were higher Friday an exception being February live cattle. Boxed beef was lower but the 5-area average price for slaughter steers sold through Thursday set a new record high of 127.90 a hundredweight. Outside economic news was also friendly for cattle. February live cattle down 47 at 123-25. January feeders up 97 at 147-07. January Class III milk down three cents at 17-31.

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

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