Egypt buys U.S. but wheat futures lower

Market Line August 18, 2010 Wheat futures were mostly lower Tuesday with Minneapolis posting the least in losses. Contracts had been higher early in the day but profit taking and technical selling were cited.

Egypt did buy 55-thousand metric tons of U.S. hard wheat.

Mark Chiodo of Chiodo Commodities at the Minneapolis Grain Exchange says this about the market.

Chiodo: “If we don’t find some support here I guess we go searching for it but the chart is showing pretty heavy downward momentum here at the moment and I think some people are jumping ship just a little bit here. I don’t really think that the wheat game is over yet. We will have to play wait and see. Certainly it is more of an international and technical game than it is fundamental from here because we have plenty of wheat in the U.S. and the basis levels are very cheap at the moment, which is indicative of a large crop, which we have.”

On Tuesday Chicago September wheat down 12 ¾ cents at 6-51. September corn was up 7 ½ cents at 4-14 ¾. Portland soft white wheat steady to 15 cents lower at mostly 6-24. Club wheat premium mostly 19 cents. HRW 11.5 % protein 11 to nineteen cents lower at mostly 6-39. No Portland DNS bids. Minneapolis spring wheat futures were down 4 ¾ cents at 6-78.

Live cattle futures were mixed with feeders higher Tuesday. Profit taking was cited in live contracts while higher boxed beef offered support. Cash feeder cattle were higher this week at Oklahoma City. October live cattle down 22 cents at 95-95. October feeders up 47 at 113-62. September Class III milk unchanged at 15-32.

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

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