Still looking for a bottom in wheat

Market Line August 31, 2009 Wheat futures closed lower Friday with Minneapolis contracts seeing some new lows. Good harvest weather was expected in the plains spring wheat belt putting pressure on Minneapolis futures.

Joe Victor of Allendale Incorporated says one factor impacting wheat was first delivery notice on September contracts, which is today. Traders were also selling wheat and buying soybeans. Victor says the market focus is shifting from production to demand.

Victor: “We are definitely in the demand phase for wheat and it is just not getting done, especially with the global competition that is out there. And it goes back to that first initial report of buying and short stock item, selling the big stock item.”

On Friday Chicago December wheat was down 7 ¾ cents at 4-95 ¼.

December corn down a quarter cent at 3-29. Portland soft white wheat steady at mostly 4-85. Club wheat mostly 7-35. HRW 11.5 % protein nine to 13 cents lower at 5-42. DNS 14% protein 11 to 17 cents lower at 6-15.

No Portland barley bids.

Cash fed cattle saw better prices last week but futures closed lower Friday as traders think packers won’t need many cattle this week, as they buy for the shortened Labor Day week. Some analysts don’t see any bottom soon for feeder contracts, which is called puzzling given the recent strength of fed cattle. October live cattle down 87 cents at 86-70. October feeders down 92 at 98-05. October Class III milk down 13 cents at 12-62.

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

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