07/16/08 Grains follow oil down

Market Line July 16, 2008 Wheat futures were lower again Tuesday. There was talk that Egypt had bought 240-thousand metric tons of optional origin wheat and that Iraq might buy up to 300-thousand tons. But Mark Chiodo of Slipka Trading at the Minneapolis Grain Exchange says a drop in crude oil hurt the row crops and wheat. He says that outside influence continues. Chiodo: "We are very much tied in to the outside markets especially the crude oil. If that should begin to drop back some more I think we will see the grains under pressure." Nearby oil futures were down over $6 a barrel on concerns about the economic slowdown in the U. S. The U.S. ag attache in Australia has reduced the estimate of the wheat crop there to 22.4 million metric tons. The USDA supply and demand report last Friday had pegged the Aussie crop at 25 million metric tons. On Tuesday Chicago September wheat was down seven cents at 8-11. September corn down 15 ½ at 6-48 ¼. Portland August new crop soft white wheat steady at 7-90 to 8-05. August HRW 11.5 % protein four to seven cents lower at 9-14. August DNS 14% protein down a nickel at 9-60. Barley at the coast 223 dollars a ton for July. Cattle futures closed higher Tuesday. Feeder contracts in particular benefited from the continuing drop in corn futures. August live cattle up 47 cents at 99-60. August feeders up 127 at 111-45. August Class III milk unchanged at 18-66. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.