Euro makes European wheat a bargain

Market Line May 2010 Wheat futures were mixed Tuesday. Outside markets like the dollar and crude oil were again pointed to.

Algeria confirmed it purchased 500-thousand metric tons of wheat from Europe in response to the sharp drop in the Euro. That was five times its intended tender.

Joe Victor of Allendale Incorporated says his firm’s view of wheat is lower.

Victor: “And that is primarily because of fundamentals. When you look at planting progress for spring wheat. You look at the crop conditions when it comes to winter wheat. Both doing very well. Of course when we look at price projections on our Allendale Advisory Service research suggesting we are sliding as we go into July expiration.”

On Tuesday Chicago July wheat was down 1 ¼ cents at 4-67 ¾. July corn up 3 ¾ cents at 3-59 ¾. Portland soft white wheat steady to a dime higher at mostly 4-77. New crop August soft white unchanged at 4-75 to 4-85. Club wheat premium mostly $1.50. HRW 11.5 % protein two cents lower at mostly 5-17. DNS 14% protein down a penny at 6-43. No Portland barley bids.

Cattle futures rebounded Tuesday. Short covering and ideas the market was oversold were mentioned. August live cattle up 32 cents at 91-52. August feeders up 52 at 112-57. USDA reported yesterday that milk production in the major states during April was up 1.7 percent over April of 2009, considerably higher than trade expectations. Ahead of the report June Class III milk down 23 cents at 13-52.

I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.

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