Southern hemisphere rain negative for wheat futures

Market Line September 9, 2009 Wheat futures made more new contract lows Tuesday as double digit losses were posted. This despite a weaker dollar and other supportive outside markets.

Dry areas of Argentina received good rains and so did Australia over the long weekend. India too says its monsoon rains have increased to above normal levels recently.

Some moisture may interrupt U.S. spring wheat harvest in the northern plains but USDA meteorologist Brad Rippey says harvest is over the 50 percent mark.

Rippey: “Finally we have passed the half-way market, 58% harvested. Eighty-eight percent is the five year average.”

Weekly export inspections for wheat were within trade expectations at just under 17 million bushels. Stats Canada releases a grains stocks report today.

On Tuesday Chicago December wheat was down 12 ¾ cents at 4-59. December corn up 1 ¼ at 3-07 ½. Portland soft white wheat down a nickel at mostly 4-72. Club wheat mostly 7-22. HRW 11.5 % protein twelve to seventeen cents lower at 5-04. DNS 14% protein 11-16 lower at 5-79. No Portland barley bids.

Cattle futures were higher Monday. There is optimism about higher cash cattle prices in this holiday shortened week. Outside markets helped as well. October live cattle up 45 cents at 87-10. October feeders up 62 at 99-17. October Class III milk down two cents at 12-11.

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

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