With Positive Weather, Negative Downturn in Wheat Market

With Positive Weather, Negative Downturn in Wheat Market

I'm KayDee Gilkey with the Market Line Report for April 5, 2012.?

May wheat closed sharply lower on the session and has given back near half of the gains from the past week as weather and outside market forces helped to spark fairly aggressive selling on Wednesday. From the floor of the CME Jarrod Kitt, Director of Research with the Linn Group, shares his observations of Wednesday’s markets.

Kitt: “At the end of the day we end with wheat down almost 20 cents. The story there is simple in terms of the world picture you’ve got ample inventories and even in the U.S. there is plenty of wheat to go around. On top of that the hard red crop is in very, very good shape and even the soft red crop is only down about 20 million bushels from last year.”

Chicago May Wheat ended Wednesday down 18 and 3/4 cents at 6-39 and 1/4. July new crop was down 19 and 1/4 cents at 6-49 and 3/4. May corn was down 1 and 1/2 cents at 6-56 and 3/4.

Portland prices for soft white wheat and club wheat were not fully established but were at mostly 7-04. Hard Red Winter Wheat with 11.5 pct protein price was not fully established at range of 7-63 to 7-78. DNS wheat with 14 pct protein price was not fully established at a range of 9-87 to 9-97.

June live cattle ended down 93 cents at 115-13. May Feeder cattle were down 3 cents at 148-20. May class III milk was down 12 cents at 15-47.

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