A setback for wheat futures

Market Line August 4, 2010 For the first time in over a week wheat futures closed lower on Tuesday. Traders said profit taking and a lack of buying by funds led to the downturn.

In Russia a grain company official said the government should stop all grain exports because of the drought but Russia’s Deputy Ag Minister said there are no plans to introduce export restrictions at present. Meanwhile there was commentary yesterday that western Europe’s wheat crop may be better than expected.

USDA reported the sale of 110-thousand metric tons of U.S. hard red winter wheat to unknown destinations.

There have been triple digit temperatures in the U.S. southern Plains and South and USDA meteorologist Brad Rippey talks about crop impacts.

Rippey: “It is already too late to really hurt the corn crop in the deep south. It is maturing quickly. We do look to the soybean crop, especially in the Delta region for impacts there. The crop is going to shut down in this heat.”

On Tuesday Chicago September wheat down 13 ¼ cents at 6-80. September corn down a penny at 3-89 ½. Portland soft white wheat down a nickel at mostly 5-95. Club wheat premium mostly 31 cents. No red wheat bids at Portland. Minneapolis September spring wheat futures were down 16 ¼ cents at 6-97.

Live cattle futures were mostly lower Tuesday with feeder contracts higher. Traders await this week’s cash fed cattle market. There is some expectation of lower prices this week. Futures discounts to the CME Feeder Index helped feeders. October live cattle down 20 cents at 94-22. October feeders up 15 at 113-87. September Class III milk down 21 cents at 15-13.

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

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