Is the wheat market top in yet?

Market Line August 13, 2010 Wheat futures posted double digit gains Thursday as USDA reports pegged U.S. and world wheat ending stocks below average trade guesses. World wheat production was cut over 15 million metric tons due primarily to Russian and other Black Sea region production problems. A larger U.S. wheat crop forecast than a month ago was offset by a 200 million bushel increase in exports, primarily for the hard red wheats.

The weekly export sales report for wheat was also bullish coming in above expectations at nearly 50- million bushels.

So has the wheat market topped yet? Here is how Country Hedging’s Brian Liedl responded.

Liedl: “Calling tops is a dangerous business, but I would say without any major new developments such as a change in the size of the crop in Australia or maybe some sort of production problem here with getting the U.S. winter wheat crop seeded, it is hard to see us push through those numbers we reached in the $8 range.”

On Thursday Chicago September wheat up 18 ¼ cents at 7-13. September corn up 10 ¾ cents at 4-06 ¼. Portland soft white wheat steady to fifty cents higher at mostly 6-28. Club wheat premium mostly 17 cents. HRW 11.5 % protein 15 to 24 cents higher at mostly 6-72. No Portland DNS bids. Minneapolis September spring wheat futures were up 19 cents at 7-17 ¾.

Live cattle futures were mixed Thursday with feeders lower. Both cash cattle and beef markets were supportive to live contracts. A higher dollar and slower weekly exports for beef were negative. October live cattle down a nickel at 93-30. October feeders down 95 at 112-27. September Class III milk down a penny at 15-54.

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

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