Harvest pressure continues on wheat futures

Market Line June 25, 2009 Wheat futures were lower Wednesday. A higher dollar got some of the blame and so did harvest pressure. Louise Gartner for the Linn Group at the Chicago Board of Trade says that’s even though there are quality problems.

Gartner: Actually there have been some reports of elevators rejecting local quality, high vomitoxin wheat in Missouri and Kentucky. They are concerned about that as harvest moves further north into the Midwest. But the general feeling is there is enough of old crop around to blend the lower quality with the higher quality to get what they need. That helps from the domestic front and but it does not help on the export front where the increasing basis, which is protecting the quality supplies, has effectively taken the U.S. out of the export market.”

Dry areas of Canada are expected to get some much needed rain.

On Wednesday Chicago September wheat was down eight cents at 5-67 ¾. September corn down 2 ¼ at 3-95. Portland soft white wheat and club wheat steady to two cents lower at mostly 5-70 with some club bids to 6-70. New crop August soft white 3-5 cents lower at 5-70 to 5-75. HRW 11.5 % protein two seven cents lower at 6-38. DNS 14% protein six to nine cents lower at 7-70. No Portland barley bids.

Cattle futures were lower Wednesday getting spillover pressure from sharply lower hog futures. Profit taking was also cited and traders are uneasy about this week’s cash fed cattle trade. A light run was reported at $80. August live cattle down 85 cents at 82-47. August feeders down 75 at 98-50.

August Class III milk up tw0 cents at 10-75.

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

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