06/03/08 Wheat rallies with row crops; cattle drop

Market Line June 3, 2008 Wheat futures saw strong gains Monday. Wheat was said to follow corn and soybeans with corn getting a boost from thoughts some Midwest corn will have to be replanted due to wetness. Lynn Smith of the Zaner Group in Chicago says short covering and bargain hunting were also drivers. Smith: "Strong rallies in outside markets such as gold and crude oil added to the bullish sentiment although the impending harvest kept a cap on pricing." USDA says Algeria cancelled a sale for 100-thousand tons of old crop hard red wheat and says it has adequate stocks for 2008. The CCC says it sold 135-thousand tons of wheat from its humanitarian reserves to provide food aid to North Korea. On Monday Chicago July wheat was up 21 cents at 7-82 ½. July corn up 16 ½ at 6-15 ¾. Portland August new crop soft white wheat 25 to 30 cents higher at 7-20 to 7-35. August HRW 11.5 % protein up 19 cents at 9-10. August DNS 14% protein 13 to 28 cents higher at 10-16. Barley at the coast 198 dollars a ton. Cattle futures posted some large losses Monday. There was profit taking, news of further delays in the reopening of the South Korean market and sharply higher corn, all adding downward pressure. August live cattle down 102 at 100-dollars 82-cents. August feeders down 2-32 at 113-70. July Class III milk down 12 cents at 20-31. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.