USDA updates production numbers this week

Market Line June 7, 2010 This Thursday USDA will update its winter wheat production number and issue new supply and demand reports on grains. Traders began positioning for the reports Friday.

Wheat futures did close lower Friday but commentaries suggest contracts did well under the circumstances. New contract lows were set but traders said selling was limited given the already large short positions held by funds. Wheat was generally seen as a follower with outside pressure coming from equity and energy markets. Old crop wheat exports were called disappointing, new crop sales more favorable.

On Friday Chicago July wheat was down six cents at 4-35 ¾. July corn down 9 ½ cents at 3-40. Portland soft white wheat ten to 12 cents lower at mostly 4-50 on lower futures and increased country selling. New crop August soft white five to 11 cents lower at 4-50. Club wheat premium mostly 75-cents. HRW 11.5 % protein seven to ten cents lower at 4-94. DNS 14% protein down a nickel at 6-20. No Portland barley bids.

Cattle futures fell hard Friday with live contracts the hardest hit on pressure from the lower stock market which raises concerns about demand for expensive beef cuts. And falling boxed beef prices added to the downward move. Feeders followed despite lower corn. August live cattle down 150 at 88-62. August feeders down 80 at 108-87. July Class III milk down three cents at 13-25.

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

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