Wheat fundamentals just bearish

Market Line October 5, 2009 Wheat futures were lower Friday getting some spillover pressure from the row crops. New lows were set at Chicago and Kansas City. Louise Gartner for the Linn Group at the Chicago Board of Trade says the news just continues to be bearish for wheat.

Gartner: “As Stats Canada put out their report increasing their wheat production estimate by about a million tonnes taking it up to about 24.5 million tonnes. That was termed negative even though it is still 14% lower than what we saw last year. We also heard from Kazakhstan putting out their production report at 21 million metric tons. That is second largest crop they have seen in several years.”

India is getting more monsoon rains which is viewed as good for the developing wheat crop there. Brazil reports a lot of disease in its wheat but Russia has made inroads to that market.

On Friday Chicago December wheat was down 11 ½ cents at 4-41 ¼.

December corn down seven cents at 3-33 ½. Portland soft white wheat two to three cents lower at mostly 4-30. Club wheat premium $3.25. HRW 11.5 % protein nine to ten cents lower at 5-02. DNS 14% protein down a dime at 6-18. No Portland barley bids.

Cattle futures fell Friday. The cash fed trade was disappointing with sales at mostly $83. Boxed beef was also lower. Packers are now calculated to be operating in the red. The lower stock market and unemployment number were also negative. December live cattle down 97 cents at $84. November feeders down 135 at 93-57. November Class III milk up 21 cents at 13-96.

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

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