Row crops pressure wheat

Market Line July 22, 2009 Wheat futures were lower Tuesday. Traders said a favorable weather outlook for corn and soybeans pressured the row crops which spilled over to wheat.

Lynn Smith with the Zaner Group at the Chicago Board of Trade says demand remains soft.

Smith: “The tender that Egypt put out unfortunately went to Russia, 60-thousand tons, which is kind of a surprise, because they had questioned the quality of the Russian wheat just a while back. But apparently they went back to them so I guess price is more important right now.”

Severe heat in parts of Russia north and east of the Black Sea has prompted officials to declare a state of emergency. Dryness in some areas of India has led to officials there to back track on allowing wheat exports.

On Tuesday Chicago September wheat was down 7 ½ cents at 5-34 ¾. September corn down 11 ¾ at 3-11 ½. Portland soft white wheat down a nickel at 5-35. Club wheat mostly 6-35. August new crop soft white mixed at 5-40 to 5-48. HRW 11.5 % protein five to eight cents lower at 6-06. DNS 14% protein down 13 cents at 6-95. No Portland barley bids.

Cattle futures were lower Tuesday. There was spillover pressure from lean hog contracts. Feedlots also have more cattle to move this week. Traders are also awaiting Friday’s Cattle on Feed report and semi-annual livestock inventory. August live cattle down 77 cents at 86-02. August feeders down 122 at 103-25. August Class III milk down 21 cents at 10-74.

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

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