USDA reports Wednesday

Market Line August 10, 2009 Wednesday USDA issues its August crop production and supply and demand reports. Expectations are for large wheat carryover stocks. Corn production is expected to be up. Traders are likely to be positioning for the report.

Friday wheat futures were lower again and Louise Gartner with the Linn Group at the Chicago Board of Trade says a stronger dollar was getting a lot of the blame.

Gartner: “They are using that strength in the dollar to further confirm that it is going to be that much more difficult to compete in a very, very competitive export arena.”

U.S. wheat futures made new lows last week and contracts in Paris and London were flirting with new lows. Yields in Europe are coming in better than expected.

On Friday Chicago September wheat was down 10 ¾ cents at 4-89 ½.

September corn down 10 ½ cents at 3-22. Portland soft white wheat mostly 4-90. Club wheat 6-90. HRW 11.5 % protein nine to 14 cents lower at 5-65. DNS 14% protein 6 to 14 cents lower at 6-55. No Portland barley bids.

Cattle futures were about steady Friday. Cash fed cattle sold last week at 81 dollars, down a dollar from the previous week. Lower corn did help feeder contracts. There is some talk cattle may have put in a seasonal low. October live cattle unchanged at 89-12. October feeders up 35 cents at 101-57. September Class III milk up 25 cents at 12-69 on gains in cheese prices.

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

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