U.S. wheat export sales jump

Market Line July 30, 2010 Wheat futures saw double digit gains Thursday as the potential of reduced world wheat production, particularly in Russia continued to dominate the news. The International Grains Council did trim its production estimate by 13 million metric tons. That would still be the third largest world wheat crop on record.

U.S. wheat export sales did pick up with the USDA reporting nearly 34 million bushels in sales last week, double trade expectations. Even Egypt bought some U.S. winter wheat.

When will the wheat rally end? Here is Joe Victor of Allendale Incorporated.

Victor: “When is it going to stop? When funds decide, whether its index or hedge funds, when they decide enough is enough and get in a long position.”

And Victor says they are long now.

On Thursday Chicago September wheat up 12 cents at 6-27 ½. September corn up three cents at 3-79. Portland soft white wheat 20 to 30 cents higher at mostly 5-25. First half August soft white steady to 15 cents higher at 5-15 to 5-60. Club wheat premium mostly 31 cents. Nearest Portland hard red winter bids were for September with 11 percent protein at 6-06 to 6-26 and October dark northern spring 14 percent at 7-38 to 7-51.

Cattle futures started higher Thursday on the decline in jobless claims but wound up closing lower. Some cash sales have occurred lower than last week and that was negative. Beef export sales year to date are up 33 percent from a year ago. October live cattle down 72 cents at 93-47. October feeders down 62 at 114-70. September Class III milk up seven cents at 15-37.

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

Now this.