Wheat lower heading into USDA reports

Market Line August 12, 2010 Wheat futures were lower Wednesday with the exception of Chicago September which was steady. Some deferred months had sharp losses. Traders said a rally in the dollar kept pressure on wheat.

USDA announced a switch from unknown destinations to Egypt of a sale of 220-thousand metric tons of hard red winter wheat. Earlier this week USDA had announced a 120-thousand metric ton sale to Egypt. Egypt also bought some French wheat.

This morning traders get USDA numbers on world wheat production, including an update on Russia. USDA also issues the weekly export sales report for wheat which are expected to be strong.

There are some scattered showers in the forecast for Russia.

On Wednesday Chicago September wheat unchanged at 6-94 ¾. September corn up two cents at 3-95 ½. Portland soft white wheat steady to 50 cents lower at mostly $6. Club wheat premium mostly 33 cents. HRW 11.5 % protein mostly 6-53. No DNS bids but Minneapolis spring wheat futures for September were down 6 ½ cents at 6-98 ¾.

Cattle futures were higher Wednesday on news that packers paid 93 to 95 dollars for fed cattle. Better beef prices are also supportive though traders remained concerned about consumer demand given the stock market’s drop. October live cattle up two cents at 95-35. October feeders up 42 at 113-22. September Class III milk up four cents at 15-55.

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

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