Foreign weather helps wheat

Market Line July 7, 2010 Wheat futures closed higher Tuesday with the exception of some deferred contracts. A major factor for wheat was said to be hot and dry weather that extends from western Kazakhstan through the southern Urals and Volga region of Russia and into the eastern Ukraine.

Peter Georgantones of Investment Trading Services in Bloomington, Minnesota is not very excited about that weather news and is selling into the rally.

Georgantones: “I don’t like the fundamentals in wheat. We have too much of it around. Should be a lot of poor quality wheat out there that is going to get fed. At any rate, with a billion bushel carryout I don‘t see much hope for a rally to hold.”

Weekly export inspections for wheat were 16.7 million bushels, slightly under what is needed weekly to meet the USDA projection on exports.

On Tuesday Chicago September wheat up 4 ½ cents at 5-07 ½. September corn down 4 ½ cents at 3-68. Portland soft white wheat for July and August five to eight cents higher at mostly 4-68 to 4-70. Club wheat premium mostly 37 cents. HRW 11.5 % protein a nickel higher at 5-19. DNS 14% protein five to 15 cents higher at mostly 6-42.

Cattle futures were higher Tuesday getting support from the early strength in the stock market and lower dollar. Beef demand over the holiday weekend was viewed as good and boxed beef prices were higher. Feeders got spillover support from live contracts. August live cattle up 32 cents at 89-80. August feeders up 85 at 113-52. August Class III milk up 26 cents at 14-62 on higher cheese prices.

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

Now this.