08/07/08 Row crops put pressure on wheat futures

Market Line August 7, 2008 Massive fund liquidation hit corn and soybean futures Wednesday putting spillover pressure on wheat. Rumors were a large hedge fund couldn't meet margin calls and had to sell. Prospects of better row crop yields are also proving negative. A stronger dollar Wednesday was also viewed as bearish for exports. Joe Victor of Allendale Incorporated says the USDA weekly export sales report could give the market direction today. Victor: "The trade is anticipating anticipating relatively solid weekly export sales on wheat for Thursday in a range from 17-24 million bushel. Allendale research suggests that at this time of year the five year average says we should be right at 25 million bushel." Pakistan is reported to have purchased 330-thousand metric tons of optional origin wheat. That's more than it announced a tender for. On Wednesday Chicago September wheat was down 14 ¼ cents at 7-65 ¾. September corn down 17 ¼ at 5-08. Portland soft white wheat steady to a dime lower at mostly 8-05 as demand to meet export vessel commitments provided support. Club wheat mostly 8-15. HRW 11.5 % protein down 11 cents at 8-75. DNS 14% protein one to six cents higher at 9-39. Barley at the coast 227 dollars a ton. Cattle futures were mixed Wednesday. While nearby contracts showed some strength deferred months suffered from lower corn and fund liquidation. Oct live cattle up 165 at 108-55. Oct feeders down two at 177-52. Sept Class III milk down 23 cents at 17-30. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.