Egypt buys but wheat futures are lower

Market Line September 3, 2009 Wheat futures lost a few cents at all the exchanges Wednesday. Terry Linn with the Linn Group at the Chicago Board of Trade says grains did come up off their lows of the day however.

Linn: “The modest recovery off of lows was fueled by short covering and a sharply lower trade in the dollar, however the ability for these markets to rally appears limited for the near term as weather conditions remain beneficial for corn and beans late in the season and supplies of wheat in the world will likely be a record high for a second consecutive season.”

Wheat did get support from news that Egypt purchased 60-thousand tons of U.S. soft red winter wheat out of a total of 330-thousand tons it bought, with France and Russian getting the rest of the business.

On Wednesday Chicago December wheat was down 1 ½ cents at 4-85 ¾.

December corn unchanged at 3-19 ¼.

Portland soft white wheat mostly 4-75. Club wheat mostly 7-25. HRW 11.5 % protein down three cents at 5-32. DNS 14% protein mixed at mostly 6-01.

No Portland barley bids.

Cattle futures were mostly higher Wednesday with feeder contracts showing the best gains. Short covering was a feature for both live and feeder contracts. Concern remains about beef demand but traders believe the market is overdone to the downside. October live cattle up 67 cents at 86-77. October feeders up 170 at 98-50. October Class III milk up three cents at 12-35.

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

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