Traders Playing it Safe Ahead of USDA's Reports

Traders Playing Safe Ahead of USDA’s Reports

I’m KayDee Gilkey with the Market Line Report for Jan 11, 2013.

KC and Chicago wheat traded lower into the closing bell Thursday. It was reported that the US sold a portion of the Egyptian wheat tender in the morning which added a supportive tilt to the market, but some were disappointed after a portion of the trade went to Canada. From the floor of the CME Group, Charles Nedoss shares his observations of Thursday’s markets.

Nedoss: “Grain markets have really been trending lower here as we’ve seen really weak demand for U.S. products. We have seen lots of the world sourcing their product out of South America as their values have been more attractive. Again the next major input that we are going to see for this market is tomorrow’s USDA Report. It is a very, very important report. The January reports have been very very big market movers over the past five to six years we’ve seen both limit up and limit down moves.”

Chicago March Wheat ended Thursday down a penny at 7-44 and 1/2. March corn ended the day up 4 and 1/2 cents at 6-98 and 3/4.

Portland prices for soft white wheat and club wheat were down a half of a cent to a penny at mostly 8-36. Hard Red Winter Wheat with 11.5 pct protein prices were down 4 and 3/5 cents at mostly 8-92 and 1/2. DNS wheat with 14 pct protein prices were down 1 and 1/4 cents at mostly 9-29 and 1/4.

February live cattle were steady Thursday at 131-55. March Feeder cattle were down 85 cents at 152-92 and 1/2. February class III milk was up a nickel at 17-75.