Possible rain for southern plains pressures wheat

Market Line August 31, 2011 Wheat futures closed lower Tuesday. Commentary mentioned the outlook for some rain next week in the extremely dry southern plains, which would be good for winter wheat planting. A higher dollar and technical selling were also cited.

USDA did announce the sale of 102-thousand metric tons of hard red winter wheat to unknown destinations.

A Farm Futures magazine survey suggests all planted wheat area for the 2012 U.S. wheat crop could be up nearly four percent from this year.

As for what to expect the rest of this week as we head toward the three-day Labor Day weekend, Luisa Longo with Market Maven at the CME says;

Longo: “So for the rest of the week I see very choppy markets as traders are going to be exiting positions before the long holiday weekend.”

On Tuesday Chicago December wheat down 4 ¼ cents at 7-90 ¾. December corn up 5 ¼ cents at 7-75 ¼. Portland soft white wheat and club wheat for first half September steady at $7 to 7-15. Hard red winter 11.5 percent protein down seven cents at 9-12. No Portland DNS bids. Minneapolis December wheat futures down 5 ¾ cents at 9-33 ¼.

Cattle futures were mixed Tuesday. Traders are waiting for some cash fed cattle trade to develop. Packers will be buying for a holiday shortened week next week. Boxed beef prices have been softening. October live cattle down seven cents at 114-52. October feeders up 30 at 133. October Class III milk up 15 cents at 18-63.

I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.

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