No reason for any big wheat rally

Market Line July 13, 2009 Wheat futures closed modestly lower Friday after USDA’s July reports. The numbers were seen as neutral overall with traders saying the higher dollar was the major market factor. USDA pegged total U.S. wheat production at 2.11 billion bushels, increased wheat ending stocks to 706 million bushels and trimmed world carryover to 181 million tonnes.

Brian Hoops of Midwest Market Solutions says the world ending stocks number is still big, limiting upside potential in wheat.

Hoops: “We will probably not see the wheat market have any appreciable rally until we have maybe some crop problem in the U.S. or other country‘s soil. So wheat is really dependent upon what is going on with demand, which looks to remain soft in addition to corn and soybeans. If we get pressure against corn and soybeans, wheat is going to have a real struggle trying to rally.”

On Friday Chicago September wheat was down 3 ½ cents at 5-18 ¾. September corn down 1 ¼ at 3-28 ¼. Portland soft white wheat five to six cents lower at mostly 5-45. Club wheat mostly 6-25. August new crop soft white three to five cents lower at 5-47 to 5-55. HRW 11.5 % protein one to four cents lower at 5-90. DNS 14% protein down a nickel at 7-08. No Portland barley bids.

Cattle futures were mixed Friday. Lower fed cash cattle prices Friday, 82 dollars, were cited as well as the Goldman roll. August live cattle unchanged at 83-47. August feeders down two cents at 102-92. August Class III milk down six cents at 10-35.

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

Now this.