Canadian wheat acreage could drop to 40-year low

Market Line June 14, 2010 Wheat futures were higher Friday with short covering for the weekend said to be a factor. The big news was out of Canada where the Wheat Board said that too much rain in grain growing areas will reduce plantings to the lowest level since 1971 at just over 19 million acres. Canadian barley acres could be the lowest since 1965. Some 8.5 to 12 million acres of spring wheat, durum and barley may go unplanted. That helped Minneapolis contracts post stronger gains that Chicago and Kansas City.

Also supportive Friday was more wet weather in the U.S. soft red winter wheat belt, which could damage wheat quality.

On Friday Chicago July wheat up 7 ½ cents at 4-40 ¾. July corn up 6 ¼ cents at 3-49 ½. Portland soft white wheat steady at mostly 4-48. New crop August soft white unchanged at 4-45 to 4-48. Club wheat premium mostly 75 cents. HRW 11.5 % protein up four cents at 4-95. DNS 14% protein 12 cents higher at 6-30.

Cattle futures were lower Friday suffering from a lower cash market and falling beef prices. Spillover pressure from stocks was also cited along with a stronger dollar, which is negative for exports. August live cattle down 50 cents at 87-27. August feeders down 15 at 110-07. July Class III milk up eight cents at 13-48.

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

Now this.