Russian wheat woes continue to drive futures higher

Market Line July 29, 2010 Wheat futures posted big gains Wednesday as the market continued to focus on production problems in Russia where Moscow based SovEcon forecast Russian grain exports would be reduced by half. Joe Victor of Allendale Incorporated explains what that means.

Victor: “Primarily we are seeing that the importer nations are leaving the Black Sea. Northern Africa, the Middle East, coming back to the U.S.”

Egypt, which has been a major destination for Russian wheat, announced it was allowing France to now use two ports to ship wheat to it, rather than just one. Some analysts however believe Egypt is one market Russia will try to continue to service.

There was even some commentary yesterday about the potential of Russia needing grain imports as it tries to keep down feed costs for its livestock sector.

On Wednesday Chicago September wheat up 20 ½ cents at 6-15 ½. September corn up 13 ½ cents at 3-76 ¼. Portland soft white wheat steady to a dime higher at mostly $5. First half August soft white 15 cents higher at 5-15 to 5-45. Club wheat premium mostly 42 cents. No Portland red wheat bids. Minneapolis spring wheat futures for September were up 17 ½ cents at 6-43.

Live cattle futures were mostly higher Wednesday with feeders mixed. Bids were increased for cash cattle but feedlots didn’t bite. Short covering was cited as well as the weakness in the dollar. October live cattle up 27 cents at 94-20. October feeders up 12 at 115-32. September Class III milk down 12 cents at 15-30 on a slip in barrel cheese prices.

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

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