South American weather focus of market

Market Line December 20, 2011 Wheat futures saw double digit gains Monday. USDA’s weekly export inspections for wheat were actually at the low end of expectations. But Scott Shelladay, with ICAP U.S. at the CME, says weather in South America that can impact corn yields there was the key.

Shelladay: “The corn market was really the story of the day with wheat and beans sympathizing with the rally. Again, it was really the story out of South America and the hotter, drier weather.”

On Monday Chicago March wheat up 16 cents at 5-99 ¾. March corn up 18 cents at 6-01. Portland soft white wheat and club wheat five to ten cents higher at mostly 5-86. Hard red winter 11.5 percent protein up 19 cents at 7-11. DNS 14% protein up 16 cents at 9-62.

Cattle futures were sharply higher Monday. This after what some analysts saw as a slightly bearish Cattle on Feed report. Fed cash cattle also sold lower last week but forecasts for winter weather in the southern plains that could affect feedlot gains triggered short covering. Boxed beef was up.

February live cattle up $3 at 121-50. January feeders up 162 at 144-67.

January Class III milk up 21 cents at 17-30 ahead of USDA reporting milk production in the major producing states was up 2.2 percent in November from November of 2010.

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