Wheat Market Down Sharply Tied to Soybean Spillover

Wheat Market Down Sharply Tied to Soybean Spillover

I’m KayDee Gilkey with the Market Line Report for Nov. 13, 2012. ?
Wheat futures sharply extended losses through the day and finished just off session lows. From the floor of the CME Group, Joe Vaclavik shares his observations of Monday’s markets.

Vaclavik: “So moving forward I believe this trade is going to be all about South American weather. Be it good South American weather and a good crop, this bean market may have seen the highs and could go actually go a lot lower in my opinion. On the flip side if you get a poor crop there, I think the beans could take off very, very easily. I think that corn could be in for a kinda of supply squeeze after the first of the year. Our corn on a world basis is not going to be resourced as fast as the beans. U.S is the number one corn producer.”

Chicago December Wheat ended Monday down 28 and 3/4 cents at 8-57 and 3/4. December corn ended the day down 20 and 3/4 cents at 7-18.

Portland prices for soft white wheat and club wheat were down 18 and 3/4 to 27 and 1/4 cents ranging between 8-62 and 3/4 and 8-72 and 3/4. Hard Red Winter Wheat with 11.5 pct protein prices were down 31 and 3/4 cents at mostly 9-73 and 1/2. DNS wheat with 14 pct protein prices were down 25 to 26 cents at mostly 10-11 and 1/2.
December live cattle were down Monday 40 cents at 125-35. November Feeder cattle were down 20 cents at 144-even. November class III milk was up 2 cents at 20-80.