Saudi tender helps wheat futures

Market Line June 17, 2010 Wheat futures had some good gains Wednesday. Traders said support came from wet weather in the southern U.S. that is delaying harvest. More rain is in the forecast in Canada too where acres may never get planted. Up to four inches could fall in Saskatchewan and Manitoba.

Saudia Arabia has an optional origin tender for nearly one million metric tons of wheat which was also called a factor in yesterday’s market as there are thoughts the U.S. might get some of the business.

Australia has upped its estimate of winter wheat crop being planted now by one percent to just over 22 million metric tons. Some dryness is noted in western Australia where a third of the country’s wheat is grown.

On Wednesday Chicago July wheat up 9 ½ cents at 4-61 ¼. July corn up 2 ½ cents at 3-56 ¼. Portland soft white wheat steady to a nickel higher at mostly 4-55. New crop August soft white two to seven cents higher at 4-55 to 4-57. Club wheat premium mostly 75 cents. HRW 11.5 % protein 13 cents higher at 5-15. DNS 14% protein nine to 14 cents higher at mostly 6-62.

Live cattle futures were mostly higher Wednesday with feeder contracts lower. Futures discount to the cash market was pointed to as a factor for live contracts. Feeder contract’s premium to the cash feeder index was a negative for those futures. A few cash fed cattle have been sold at 91 dollars. August live cattle up 57 cents at 89-17. August feeders down seven cents at 110-90. July Class III milk up four cents at 13-62.

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

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