Trade expects higher wheat numbers

Market Line August 12, 2009 USDA issues a crop production report this morning and new supply and demand numbers. Futures traders will react to the USDA reports. Higher U.S. wheat production and carryover stocks are expected.

Wheat futures were modestly lower Tuesday heading into the report. Louise Gartner for the Linn Group at the Chicago Board of Trade says reports of good wheat yields continue to come in from France.

Gartner: “They are at near record yields at about 110 bushels an acre. Germany is a similar story where they are looking at better than expected yields as well. So the two key players in the EU are coming in with bin buster crops.”

The issue of a cold snap and frost in the Canadian prairies later this week has been raised by the Canadian Wheat Board.

On Tuesday Chicago September wheat was down nine cents at 4-89 ¼.

September corn up 2 ¼ at 3-26 ½. Portland soft white wheat steady to down a dime at mostly 4-85 with a two dollar premium on club wheat. HRW 11.5 % protein down eight cents at 5-57. DNS 14% protein down six cents at 6-49. No Portland barley bids.

Cattle futures were lower Tuesday on technical selling and contract spreading. Cattle feeders were asking 83-84 dollars. Last week’s sales were at mostly 81. October live cattle down 65 cents at 87-67. October feeders down 52 at 100-10. September Class III milk down nine cents at 12-65.

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

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