Big world crop keeps pressure on wheat futures

Market Line August 14, 2009 Wheat futures closed lower Thursday. Commentators say the big world wheat crop and poor demand are weighing on wheat. A French analytical firm increased its estimate of French wheat production adding to the bearishness. Weekly export sales for wheat came in above the weekly average needed to meet USDA projections.

Minneapolis wheat lost ground to Chicago and Kansas City and Joe Victor of Allendale Incorporated says;

Victor: “And since the beginning of this week we have been very strong advocates of buying the Chicago September wheat contract and selling the Minneapolis September contract. Really from a fundamental standpoint that harvest pressure more so into the spring wheat market and taken off of the winter wheat market.”

On Thursday Chicago September wheat was down 8 ¾ cents at 4-81 ½.

September corn down 6 1/4 at 3-24 ½. Portland soft white wheat steady to 20 cents higher at mostly 4-93 as some exporters raised bids to attract country selling. Club wheat mostly 6-68. HRW 11.5 % protein down a dime at 5-44. DNS 14% protein down 12 cents at 6-31. No Portland barley bids.

Cattle futures were mixed Thursday. There was not much action in the cash fed market. Feeder contracts generally followed live contracts. The U.S. Meat Export Federation says that through the first half of 2009 U.S. beef exports are down two percent by volume and six percent in value. In the futures, October live cattle down 15 cents at 88-20. October feeders down a dime at 100-07. September Class III milk down 14 cents at 12-63.

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

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