Ag attache' cuts Russian wheat forecast

Market Line August 30, 2010 Wheat futures were higher on Friday. Thoughts that Europe may be running short on exportable wheat provided support as did news that Pakistan will not export any wheat because of crop losses from flooding.

The U.S. ag attache’ in Moscow pegs the Russian wheat crop at 41 million metric tons. That compares to the last USDA estimate of 45 million.

Brian Hoops of Midwest Market Solutions says something more is needed to get wheat to take off again.

Hoops: “We don’t have quite enough, strong enough demand to get us a lot higher but we are being supported by some light demand ideas and ideas that Russia possibly could import wheat into the country.”

Russian Prime Minister Putin tried to put an end to the import rumors late last week saying Russia does not have a grain deficit.

On Friday Chicago December wheat up 6 ½ cents at 6-95. December corn up four cents at 4-36. Portland soft white wheat steady to a nickel higher at mostly 6-25. Club wheat premium mostly 17 cents. HRW 11.5 % protein nine cents higher at 6-95. No Portland DNS bids. Minneapolis December spring wheat up 8 ¼ cents at 7-12 ½.

Cattle futures were mixed Friday. Fed cattle generally sold at steady money last week but on Friday boxed beef turned lower. Traders are expecting a pullback as we head into the end of the month and the Labor Day holiday. Higher corn pressured feeders. October live cattle down 42 cents at 98-10. October feeders down 45 at 117. October Class III milk down a penny at 15-60.

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