Wheat rally stalls

Market Line July 19, 2010 Wheat futures were lower Friday following a week of strong advances. Profit taking was cited and there was commentary about the market being over bought. The saying is bull markets need to be fed daily and traders said there was a lack of news. Weather issues in Europe and Russia have been the driving force behind the rally but European traders are saying that’s now priced in and they are now watching the U.S. corn crop.

The export sales report for U.S. wheat last Thursday was called just so-so and that may have dampened enthusiasm too.

On Friday Chicago September wheat down nine cents at 5-87 ¼. September corn up 2 ¼ cents at 3-94 ¾. Portland soft white wheat steady to a dime higher at mostly 4-93 with heavy country offerings. New crop August soft white five to ten cents higher at 4-85 to $5. Club wheat premium mostly 37 cents. No Portland hard red winter or DNS bids. September Minneapolis spring wheat futures were down a penny at 6-11 ½.

Cattle futures were mostly lower Friday. A lower stock market and its impact on consumer confidence was cited along with profit taking. Hot weather for the feeding areas of the central U.S. which makes weight gain difficult and offers some support. Feeders followed live contracts and saw some chart selling. August live cattle down 12 cents at 92-27. August feeders down 27 at 113-10. August Class III milk down 16 cents at 14-90.

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

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