Wheat Weighs Down Grains Markets

Wheat Weighs Down Grains Markets

I'm KayDee Gilkey with the Market Line Report for April 11, 2012.?

Improving crop weather for the US and Europe, a bearish trend from outside market forces and weakness in the other grains helped to drive the wheat market lower to close sharply lower on the day Tuesday.

From the floor of the CME, Jarrod Kitt Director of Research for the Linn Group shares his observations of Tuesday’s markets.

Kitt: “It looked like a potentially promising day for wheat. There was a potential frost event that people were talking about for the SRW crop. In addition to that, in the USDA report today they confirmed additional wheat feeding both in the U.S. and in the world. So we were expecting a good day in wheat, that didn’t materialize at all. In fact they got absolutely bombed. They ran buy-stops early, hit up 10 cents and finished down 18. So anyone who bought on that uptick is definitely regretting it today.”

Chicago May Wheat ended Tuesday down 17 and 1/4 cents at 6-25 and 3/4. July new crop was down 17 cents at 6-32. May corn was down 14 and 1/4 cents at 6-34 and 3/4.

Portland prices for soft white wheat and club wheat were at mostly 7-01. Hard Red Winter Wheat with 11.5 pct protein were down 14 to 19 cents at mostly 7-38. DNS wheat with 14 pct protein were down 13 cents at mostly 9-76.

June live cattle ended down $1.48 at 114-30. May Feeder cattle were down 90 cents at 147-60. May class III milk was up a nickel at 15-36.

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