Row crops pressure wheat

Market Line July 17, 2009 Wheat futures were mostly lower Thursday. Wheat had seen gains most of the session but pressure on corn and soybeans from good crop weather spilled over to take wheat down too. Export wheat sales were within trade expectations but nothing to get excited about.

Louise Gartner for the Linn Group at the Chicago Board of Trade says traders also took note of China’s announcement it was releasing some reserve stocks of grain and soybeans.

Gartner: “Lot of debate about whether the domestic buyers will actually buy it but just the mere fact that they are willing to open up these reserves and take some pressure off cash prices in China certainly leading to more liquidation here.”

Argentina keeps cutting its estimate of planted wheat acreage, already at historic lows due to drought. Temperatures may be hot next week for Russia’s spring wheat.

On Thursday Chicago September wheat was down 1 ½ cent at 5-33 ¼.

September corn down 12 ¾ at 3-16 ¾. Portland soft white wheat steady to a nickel lower at mostly 5-40. Club wheat mostly 6-30. August new crop soft white mixed at 5-45 to 5-50. HRW 11.5 % protein down a penny at 6-02.

DNS 14% protein down four cents at 7-10. No Portland barley bids.

Fund buying, buy stops and contract spreading helped cattle futures close higher Thursday with lower corn again helping feeder contracts. August live cattle up 67 cents at 85-60. August feeders up 85 at 103-90. A jump in spot cheese prices sent milk futures higher with August Class III milk up 26 cents at 10-53.

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

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