07/21/08 Speculators short wheat

Market Line July 21, 2008 Wheat futures were mixed Friday with just Minneapolis spring wheat posting gains but there was some support from potential weather delays for both hard red and soft red winter wheat harvesting. Wheat performed much better than the row crops and buying wheat and selling corn was noted. The Commitment of Traders Report shows that both large and small speculators are heavily short in wheat futures. Egypt is reported to have purchased 60-thousand tons of wheat from either the U.S. or Canada. Reports out of Pakistan say the U.S. has agreed in principal to provide 500-thousand metric tons of wheat but it is not clear how that will be done. There have been rains in both western and eastern Australia again. On Friday Chicago September wheat was down 5 ½ cents at 8-04. September corn down 21 ¾ at 6-09. Portland August new crop soft white wheat was unchanged to up eight cents at 7-90 to 8-05. August HRW 11.5 % protein one to four cents higher at 9-14. August DNS 14% protein up eight cents at 9-73. Barley at the coast 223 dollars a ton for July. Live cattle futures were firm Friday with feeder contracts sharply higher. The continuing fall in corn prices benefits feeders. This Friday is USDA's Cattle on Feed Report. August live cattle up a dime at 97-50. August feeders up 232 at 113-87. August Class III milk down two cents at 18-99. USDA reported Friday milk production in the 23 major states in June was up 3.4 percent from June 2007 with more cows and higher output. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.