Brazilian announcement negative for wheat futures

Market Line September 18, 2009 Wheat futures recovered somewhat late in the session Thursday but still closed lower at Chicago and Kansas City with gains in Minneapolis. The weekly export sales report came in within trade expectations although they are still running well behind the five year average pace for now in total.

Louise Gartner with the Linn Group at the Chicago Board of Trade says another negative yesterday was an announcement by Brazil that it would test all U.S. wheat imports for vomatoxin, even hard red winter wheat.

Gartner: “Most of the time they are only going to be finding vomatoxin in soft red but they did announce they will be testing. So that added some pressure to the complex on fears that of course that maybe they were going to slowdown some of the exports or that the testing itself would reveal something. So the wheat market kind of chopping around.”

On Thursday Chicago December wheat was down 5 ½ cents at 5-61 ¾.

December corn down 7 ¼ at 3-29. Portland soft white wheat steady to three cents lower at mostly 4-52. Club wheat premium $3. HRW 11.5 % protein five to six cents lower at 5-09. DNS 14% protein six to eleven cents higher at 6-36. No Portland barley bids.

Weak cash fed cattle and boxed beef prices pressured cattle futures Thursday. The Linn Group says some packers are asking for a two week delay before they take delivery on cattle purchases. Traders were also defensive ahead of today’s Cattle on Feed report. October live cattle down 120 at 85-77. October feeders down 175 at 96-70. October Class III milk up a nickel at 12-16.

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

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