06/12/08 Iran a factor in big wheat rally

Market Line June 12, 2008 It was limit up in most wheat futures Wednesday at all exchanges in the biggest rally since new highs were made in March. Corn, which also closed limit up, started things off and spilled over to wheat. Higher crude was a factor but Mark Chiodo of Slipka Trading in Minneapolis says so is too much moisture in the cornbelt. Chiodo: "Folks feel like we are going to if not lose acres at least lose yield. I have heard a couple of estimates that they think we have lost a million or two acres in the corn already." There are commentaries saying many traders are fans of $8 corn. Items in the wheat news stream were a statement by Iran's Commerce Secretary that his country would need to import five million tons of wheat. USDA announced a 100-thousand metric ton sale of U.S. hard red winter wheat to Nigeria. Dry weather is forecast to return to eastern Australia. On Thursday Chicago July wheat was up 60 cents at 8-69. July corn up 30 cents at 7-03 ¼. Portland August new crop soft white wheat 30 to 35 cents higher at 8-40 to 8-55. August HRW 11.5 % protein 60 to 62 cents higher at 9-96. August DNS 14% protein 58 to 63 cents higher at 10-81. Barley at the coast 218 dollars a ton for July. The limit up move in corn drove feeder contracts down Wednesday but better cash prices helped live cattle futures post gains. August live cattle up 122 at $100.85. August feeders down 2-15 at 108-82. July Class III milk down seven cents at 20-03 while contracts from September through 09 saw gains. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.