Harvest pressure on wheat futures

Market Line June 19, 2009 Wheat futures were lower Thursday on what analysts said was increasing harvest pressure and spillover from the row crops. Export sales were about in line with trade expectations but continue to run behind the weekly average needed to meet USDA’s projection for the marketing year.

Louise Gartner for the Linn Group at the Chicago Board of Trade has an update on Europe.

Gartner: “Strategy Grains out of France are estimating that total European Union soft wheat production will be down by about 6.5 million tonnes to 283 million. They are lowering their exports almost a couple of million tonnes down to 12.6 million tonnes, which is down about 40% from last year. Some dry areas across Europe contributing to the reduction in production, but generally they will have plenty of wheat available left over from old crop and still into the new crop.”

On Thursday Chicago July wheat was down 5 ¾ cents at 5-60 ¼. July corn down 4 ½ at 4-03 ¼. Portland soft white wheat and club wheat five to six cents lower at mostly 5-80 with some club bids to 6-80. August new crop soft white down a nickel at 5-80 to 5-85. HRW 11.5 % protein two to four cents lower at 6-53. DNS 14% protein steady to down four cents at 7-92. No Portland barley bids.

Optimism about cash fed cattle prices helped live cattle futures close higher while feeder contracts were called firm on spillover support. Traders are expected to tweak positions ahead of this afternoons Cattle on Feed report.

August live cattle up 32 cents at 81-70. August feeders up 47 at 97-80.

July Class III milk down three cents at 10-13. USDA says milk production in the 23 major states during May was down two-tenths of a percent from May 2008.

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

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