Wheat futures drop; cattle rally

Market Line August 17, 2010 Wheat futures posted some 30-cent plus losses Monday and analysts said the chart pattern was not friendly and could be a factor today.

Traders said wheat came under pressure from talk of cooler temps and some rain in drought stricken areas of Russia which would help winter wheat seeding. There was also talk Russia will honor its sales to Egypt.

Mark Chiodo of Chiodo Commodities at the Minneapolis Grain Exchange offers this assessment of the market.

Chiodo: “I think the market is just king of sitting here looking at a two-month window for us to get some wheat sold and we haven‘t done a lot. I know Jordon was looking around for hard wheat. Hopefully we get some of that done. But we need to get something sold out of the U.S. here.”

On Monday Chicago September wheat down 38 ¾ cents at 6-63 ¾. September corn down 4 ½ cents at 4-07 ¼. Portland soft white wheat five to 15 cents lower at mostly 6-33 with some exporters not issuing bids. Club wheat premium mostly 17 cents. HRW 11.5 % protein down 36 cents at 6-35. No Portland DNS bids. Minneapolis spring wheat futures for September were down 32 cents at 6-82 ¾.

Cattle futures rallied Monday with live contracts seeing some new highs. Last week’s cash fed cattle prices were supportive as were higher boxed beef prices. A break in the heat in the Midwest is seen as helping to spur barbecue demand for beef. October live cattle up 110 at 96-17. October feeders up 172 at 113-15. September Class III milk down eight cents at 13-32.

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

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