05/07/08 Keep an eye on Australia

Market Line May 7, 2008 Wheat futures were higher Tuesday. Both speculators and funds were said to be buyers. Mark Chiodo of Slipka Trading at the Minneapolis Grain Exchange says commodities got some help from an oil price forecast. Chiodo: "Goldman Sachs coming out and predicting that ultimately crude oil will go to $200 a barrel. That kind of scares everybody a little bit and that helped push the row crops up. Actually the whole complex." Goldman Sachs says that price could happen in the next two years as a price spike. Back to wheat, there were unconfirmed reports of an Iraqi wheat purchase from the U.S., Canada and Australia. After getting moisture Australia is turning dry again with some growers awaiting moisture before planting wheat. The forecast for down under is dry for the next seven days. On Tuesday Chicago July wheat was up 12 ½ cents at 8-18. July corn up 12 ¼ at 6-06 ¼. New crop August soft white wheat 20 to 28 cents higher at 7-93 to $8. August HRW 11.5 % protein nine to 11-cents higher at 9-31. August DNS 14% protein 14 to 24 higher at 10-08. Barley at the coast 198 dollars a ton for July. Cattle futures were mixed Tuesday. There was short covering and technical trading. June live cattle up 62 cents at 91-82. August feeders down a nickel at 108-20. June Class III milk up 57 cents at 19-42. August through December contracts settled above $20 for the first time. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.