Uncertainty Weighs on Grain Markets

Uncertainty Weighs on Grain Markets

I’m KayDee Gilkey with the Market Line Report for Dec. 11, 2012. ?

Bearishness from the U.S. livestock sector may or may not have a justified relationship with feed grains' bearishness Monday. But, especially before a monthly WASDE report, many traders didn't want to take the risk and chose to liquidate long corn, soybean and Chicago wheat positions. From the floor of the CME Group, Joe Vaclavik shares his observations of Monday’s markets.

Vaclavik: “Grain markets were mixed today ahead of a big USDA report tomorrow. Tomorrow at 7:30 Chicago time will be the USDA December’s Crop Production Report. I’ll run through some of the pre-report estimates with you here. Looking for wheat carryout to grow by about 14 million bushels, looking for 718, we saw 704 in November. Export demand for wheat may be the culprit there if these numbers were to come to fruition.”

Chicago March Wheat ended Monday down 12 and 1/4 at 8-48 and 3/4. March corn ended the day down 7 and 1/4 cents at 7-30.

Portland prices for soft white wheat and club wheat were down 12 and 1/4 cents at mostly 8-71 and 1/4. Hard Red Winter Wheat with 11.5 pct protein prices were down 6 and 1/2 cents at mostly 9-86 and 1/4. DNS wheat with 14 pct protein prices were down 7 cents at mostly 10-12.

February live cattle were down Monday 12 and 1/2 cents at 130-27 and 1/2. January Feeder cattle were up $1-00 at 149-77 and 1/2. January class III milk was up a nickel at 18-12.