USDA Acreage Boost Weighs on Wheat Futures

USDA Acreage Boost Weighs On Wheat Futures

I'm KayDee Gilkey with the Market Line Report for February 24, 2012.

U.S. wheat futures fell on Thursday, led lower by declining spring wheat prices after the U.S. Ag Department raised its forecast for plantings this year. USDA forecast the largest wheat acreage in three years and said world wheat stocks will swell to a record 213.1 million tonnes by the end of the marketing year, up 6 percent from a year earlier.

From the floor of the CME, Frank Lesh of Future Path Trading shares his observations of Thursday’s market.

Lesh: “USDA economists today from that USDA Ag Outlook Forum told us to expect crop prices and farm income to decline this year. As producers respond to these high prices around the world with increase production. Right now wheat areas look to have greatly improved soil moisture and large wheat supply limiting this wheat advance. Wheat basically right now a follower to the corn market.”

March corn was up 1 and 1/4 cents at 6-39 and 1/2. March Wheat ended Thursday down 2 and 3/4 cents at 6-41 and 3/4.

Portland prices for soft white wheat and club wheat were at mostly 7-00. Hard Red Winter Wheat with 11.5 pct protein was down about a nickel at mostly 7-60. DNS wheat with 14 pct protein had no available prices for Thursday.

April live cattle were down $1.48 at 129-68. March feeder cattle were down 78 cents at 157-65. March class III milk was down 14 cents at 15-23.

I'm KayDee Gilkey with the Market Line Report on the Northwest Ag Information Network.