06/09/08 Funds back into commodities

Market Line June 9, 2008 USDA issues its June crop production and supply and demand reports tomorrow morning. There is a lot of interest in what USDA will say about the U.S. corn crop acreage and yields. One analyst says Chicago wheat could crash following the report because it is expected to be bearish. However, Lynn Smith of the Zaner Group points out the USDA report may not quite be up to date on soft red wheat. Smith: "Excessive rain in some soft red winter wheat regions may have deteriorated crop conditions in those areas, but it may be too late to be reflected in Tuesday's USDA supply and demand report." Friday saw more big gains for wheat futures and Portland cash prices. Record crude oil prices helped commodities generally and analysts say the funds were moving out of equities and back into commodities. Traders were said to have ignored forecasts for rain in Australia. On Friday Chicago July wheat was up 25 ½ cents at 8-11. July corn up 7 ½ at 6-50 ¾. Portland August new crop soft white wheat 36 to 40 cents higher at 7-90 to 8-10. August HRW 11.5 % protein up 28 cents at 9-31. August DNS 14% protein up 25 cents at 10-27. Barley at the coast 213 dollars a ton for July. Cattle futures were lower Friday. Packer bids were mostly steady on the week. Higher corn continued to pressure feeder contracts. August live cattle down 80 cents at $100.20. August feeders down 57 at 112-25. July Class III milk down 18 cents at 20-55. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.