05/12/08 Bearish reaction to USDA wheat numbers

Market Line May 12, 2008 Wheat futures closed lower Friday following the USDA's reports. The winter wheat forecast combined with a trend line estimate for spring wheat pegged the U.S. wheat crop at a 10-year high of 2.4 billion bushels. World wheat production was forecast at a record 656 million tons. Jon Marcus of Lakefront Futures and Options in Chicago has a range he thinks Chicago futures will trade in. Marcus: "I think you will see the wheat market trend anywhere between $7.50 and maybe as high as $9.50. The first thing I would think seeing these numbers is yes, you would see it slowly sell off, but with corn and beans being as strong as they are, that could support this wheat market some what." On Friday Chicago July wheat was down 17 ½ cents at 8-04 ½. July corn down a penny at 6-29 ¼. Portland new crop soft white wheat 10 to 20 cents lower at 7-80 to 7-90. August HRW 11.5 % protein down 20 cents at 9-14. August DNS 14% protein down 14 cents at 10-06. Barley at the coast 198 dollars a ton for July. Cattle futures posted gains Friday with $94 cash fed cattle helping both live and feeder contracts. Weak corn also helped feeders. There will be a Cattle on Feed Report Friday. Last Friday, June live cattle up 87 cents at 94-52. August feeders up 45 at 109-92. June Class III milk down nine cents at 19-48. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.