Wheat futures again the leader to the downside

Market Line June 11, 2009 Wheat futures posted double digit losses Wednesday in the wake of USDA’s June production and supply and demand reports. Traders said the wheat carryout number was bearish as was a higher dollar. USDA also increased its estimate of world wheat ending stocks.

Al Kleist of Kleist Commodities expects Chicago and Kansas City futures to get the most pressure in a weak wheat market.

Kleist: “Just globally there is plenty of wheat in the world. The global ending stocks are showing we are not going to run out of wheat. If we are going to stay tight on anything it is going to be on the high quality spring wheat we have coming out of the U.S. and Canada.”

On Wednesday Chicago July wheat was down 17 ¾ cents at 5-96. July corn down 8 ¼ at 4-35 ¾. Portland soft white wheat and club wheat steady to ten cents lower at mostly 6-10 with some club bids to $7. August new crop soft white steady to down a dime at $6 to 6-20. HRW 11.5 % protein 10-13 cents lower at 6-78. DNS 14% protein down 16 cents at 8-12. No Portland barley bids.

Cattle futures were lower Wednesday with profit taking and contract spreading features of trading. Outside markets were also called negative. There was good whole sale beef movement Wednesday. Weak cash markets are negative for feeder contracts. August live cattle down 90 cents at 80-82. August feeders down 15 at 96-17. July Class III milk down 15 cents at 10-59.

I’m Bob Hoff and that’s Market Line on the Northwest Ag Information Network.

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