After early pressure futures recover

Market Line December 13, 2011 Wheat futures were mixed Monday. A higher dollar and European debt concerns put pressure on contracts early but they recovered and Jack Scoville with Price Futures Group at the CME was impressed with the action in grains.

Scoville: “I thought price action was particularly encouraging because they couldn‘t break the market and keep it down. The recovery does imply that a lot of the selling we have been experiencing over the five past weeks or so has probably been exhausted for now.”

Kansas City contracts got pressure from a better weather outlook for winter wheat. The weekly export inspection report for wheat came in within the mid-range of expectations.

On Monday Chicago March wheat down 1 ¾ cents at 5-94 ¼. March corn down a quarter cent at 5-94. Portland soft white wheat and club wheat steady to a nickel lower at mostly 5-86. Hard red winter 11.5 percent protein down a dime at 7-05. DNS 14% protein three to 13 cents lower at 9-59.

Cattle futures closed mostly higher Monday. Early outside pressure had contracts sharply lower but the market rebounded which was encouraging to analysts. A discount to the cash fed market helped live cattle contracts. Choice boxed beef was up recovering from a big drop Friday. February live cattle up 20 cents at 118-65. January feeders up 90 cents at 143. January Class III milk down 11 cents at 16-75.

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

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