Moderate Losses in Wheat Market

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

Wheat futures favored a weaker tone throughout the day Tuesday. Futures saw light profit-taking following Monday's gains, as wheat continues to follow the daily price changes in the corn pit. From the floor of the CME Group, Frank Lesh shares his observations of Tuesday’s markets.

Lesh: “But what we know right now is tight balance sheets are indeed going to get tighter. This is the tightest we’ve seen in many, many years probably since 1988 the last great drought prices. The current prices, what we ask right now, ‘Have we priced this current situation in?’ You have to remember that corn is up 35 percent from lows from $5 here trading just above $7 right now. So we’ve made some big moves, we are pricing a lot of this in. The question going forward is, ‘Do we need to price more in?’; and the weather is going to tell that tale in the next several weeks.”

Chicago September Wheat ended Tuesday down 7 cents at 8-21 and 1/4. September corn ended the day down 13 and 1/2 cents at 7-18 and a 1/2.

Portland prices for soft white wheat and club wheat were down 5 to 8 cents at 8-25. Hard Red Winter Wheat with 11.5 pct protein prices were down 8 cents at mostly 8-70. DNS wheat with 14 pct protein prices were down 9 cents at mostly 10-11.

August live cattle ended Tuesday down 65 cents at 118-40. August Feeder cattle were down 93 cents at 143-35. August class III milk was down 8 cents at 17-44.

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