New USDA numbers today

Market Line July 9, 2010 USDA will provide a surveyed estimate of spring wheat production this morning as well as an update on winter wheat. Also supply and demand numbers. Thursday wheat futures put in strong gains again on weather concerns overseas, which now include southern Australia as well as the Black Sea region.

Peter Georgantones of Investment Trading Services in Bloomington, Minnesota doesn’t think the wheat rally is justified but says that is the power of the funds when they buy.

Georgantones: “Funds love to jump on board these grains and there is new buying and short covering creating a situation where it has gotten kind of ridiculous this week. Just doesn‘t justify what is going on out in the country fundamentally but it is what it is and that‘s the way these grains have become.”

On Thursday Chicago September wheat up 18 cents at 5-48 ½. September corn up 7 ¼ cents at 3-85 ½. Portland soft white wheat up at nickel at mostly 4-77. New crop August soft white five to ten cents higher at 4-80 to 4-85. Club wheat premium mostly 37 cents. HRW 11.5 % protein up 11 cents at mostly 5-55. DNS 14% protein 12 cents higher at 6-76.

Cattle futures were mostly higher Thursday. Cash fed cattle sold better than expected this week with prices ranging from 90 to 93 dollars. The higher stock market was also seen as supportive with an improvement in jobless claims. August live cattle up 40 cents at 90-90. August feeders up 50 at 113-60. August Class III milk up three cents at 14-66.

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

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