Wheat fundamentals still bearish

Market Line July 7, 2009 Wheat futures closed lower Monday. There was spillover pressure from the row crops, which are seeing better than expected weather, and also from lower crude oil. The winter wheat harvest continues with USDA reporting 56 percent of the crop now cut.

Louise Gartner for the Linn Group at the Chicago Board of Trade says wheat may be trying to put in the harvest low, however;

Gartner: “The fundaments are still fairly negative for wheat as we look at a good northern hemisphere crop coming on and of course harvest is gearing up across the northern hemisphere. That is expected to keep a lid on prices and if nothing else trade sideways.”

India’s government has removed its ban on wheat exports and will allow state owned trading companies to export 900-thousand metric tons of wheat.

On Monday Chicago September wheat was down 9 ¾ cents at 5-19 ¼. September corn down 11 at 3-34 ¾. Portland soft white wheat and club wheat five to ten cents lower at 5-55 with some club bids to 6-78. August new crop soft white steady to lower at 5-58 to 5-65. HRW 11.5 % protein 13-18 cents lower at 5-91. DNS 14% protein down a dime at 7-13. No Portland barley bids.

Live cattle futures were lower Monday with most feeder contracts higher. Traders are said to be nervous about getting the futures ahead of the cash market. Feeders got support from lower grain and from higher cash prices. August live cattle down 45 cents at 84-42. August feeders up 35 at 103-80. August Class III milk down a penny at 10-51.

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

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