Wheat futures can't hold gains

Market Line June 17, 2009 Wheat futures opened higher Tuesday but slid lower to close down on the day. Although there have been rain delays for the winter wheat harvest in the Plains, Louise Gartner for the Linn Group at the Chicago Board of Trade, says that will be changing.

Gartner; “The weather forecasts do suggest we will turn warm and dry so that should allow for some quick ramping up of harvest. That is obviously what the trade is looking at here that you are going to see much more wheat hit the pipeline and create much more pressure to the downside.”

It continues to be dry in Argentina which could lead to further declines in planted wheat acres. The Australian government put out its initial wheat production estimate at 21.9 million metric tons, slightly more than this past year’s 21.4 million.

On Tuesday Chicago July wheat was down 9 ½ cents at 5-65 ¾. July corn down two cents at 4-04. Portland soft white wheat and club wheat steady to a nickel higher at mostly 5-80 with some club bids to 6-75. August new crop soft white mixed at 5-75 to 5-90. HRW 11.5 % protein seven to nine cents lower at 6-53. DNS 14% protein 10-11 cents lower at 7-91. No Portland barley bids.

Cattle futures were lower Tuesday as sell stops were triggered for both live and feeder contracts. Traders await cash fed cattle developments and also a Cattle on Feed report Friday. Cash feeders have been mixed this week. August live cattle down 45 cents at 80-37. August feeders down 65 at 96-55.July Class III milk down seven cents at 10-28.

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

Now this.