Cattle Markets Soar Higher, Wheat Markets Tank

Cattle Futures Soar Higher, Wheat Markets Tanks

I’m KayDee Gilkey with the Market Line Report for Dec. 12, 2012. ?
March Chicago and KC wheat ended the day sharply lower following Tuesday morning's USDA report that was considered bearish against trade expectations. From the floor of the CME Group, Greg Wagner shares his observations of Tuesday’s markets.

Wagner: “We had a very interesting day obviously a big, big report one of the monthly supply and demand reports from USDA. Typically, this is a sleeper. It was not a sleeper as far as wheat goes. Bottom line here is a headline number is all focused on wheat as far as the price performance. Wheat absolutely got tanked today. Its really a stellar performer here in the beef sector with cattle and feeder cattle both rallying sharply. Live cattle market basis February contract had been hovering near the low end of a trading range. Today that made a big difference with a rally of a $1.67.”

Chicago March Wheat ended Tuesday down 27 and 1/4 at 8-21 and 1/2. March corn ended the day down 2 cents at 7-28.

Portland prices for soft white wheat and club wheat were down 22 and 1/4 to 27 and 1/4 cents at mostly 8-46 and 1/2. Hard Red Winter Wheat with 11.5 pct protein prices were down 21 and 3/4 cents at mostly 9-64 and 1/2. DNS wheat with 14 pct protein prices were down 16 cents at mostly 9-96.

February live cattle were up Tuesday $1.67 and 1/2 at 131-95. January Feeder cattle were up $2-30 at 152-08 and 1/2. January class III milk was up 24 cents at 18-36.