Egypt disappoints futures traders

Market Line August 26, 2010 Wheat futures saw big losses Wednesday. A higher dollar and the moisture in the forecasts in Russia were negative but Egypt provided the most bearish news. Brian Hoops of Midwest Market Solutions says Egypt snubbed the U.S. in a wheat tender buying from France and Canada instead.

Hoops: “U.S. wheat was priced around $295 a metric ton. The range of the offers on this were 274 to $290 dollars so you can see we were way above the lowest of the offers and our freight rates compared to France were double. So we are not competitively priced and that is why wheat sold off.”

This morning the USDA issues the weekly export sales report for wheat.

On Wednesday Chicago December wheat down 27 ¼ cents at 6-80 ½. December corn down a half cent at 4-20. Portland soft white wheat ten to 20 cents lower at mostly 6-20. Club wheat premium mostly 17 cents. HRW 11.5 % protein down 25 cents at 6-53. No Portland DNS bids. Minneapolis December spring wheat down 19 cents at 6-95 ¼.

Wednesday saw live cattle futures mostly lower and feeder contracts mostly higher. Cash fed cattle have traded about steady this week and choice beef was higher yesterday but traders are thinking both the cattle and beef markets may be topping. The stock market has also been a negative for cattle. October live cattle down 77 cents at 98-67. October feeders up 20 at 117-40. October Class III milk up a nickel at 15-73.

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

Now this.