09/17/08 Wall Street woes wallop grains

Market Line September 17, 2008 Wheat and corn futures saw sharp losses Tuesday as analysts said the woes of the credit market trumped fundamentals. One market observer called index funds a sleeping giant in that index longs still hold 47 percent of the open interest in wheat futures. Rumors were rampant about AIG's index position in grains. Meanwhile, the Australian government's latest estimate of the wheat crop down under is lower at 22.5 million tons. That's in line with USDA's September estimate. While dry conditions prevail in the Northwest for winter wheat planting, USDA meteorologist Brad Rippey says wet conditions created by Hurricane Ike are causing delays in the Plains. Rippey: "And it is going to be a while before winter wheat planting can resume in west Texas, much of Oklahoma and across eastern Kansas. And that is where we expect to see the greatest delays in the next couple of weeks." On Tuesday Chicago December wheat was down 37 cents at 6-90. December corn down 29 ¾ at 5-32 1/4. Limited bids at Portland with soft white wheat 15-25 cents lower at mostly 6-80. Some premiums of up to 25 cents a bushel offered for maximum 10.5 percent protein. Club wheat 6-90. HRW 11.5 % protein 24 to 29 cents lower at 7-85. DNS 14% protein down 24 to 34 cents at 8-78. Barley at the coast 200 dollars a ton. Cattle futures also posted heavy losses Tuesday. Cheaper corn raises concerns about increased beef production. Oct live cattle down a dollar at 102-75. Oct feeders down 115 at 107-67. Oct Class III milk up 12 cents at 16-94. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.