Foreign weather helps wheat

Market Line August 31, 2010 Except for some far out contracts at Chicago wheat futures were higher Monday. After moving sharply higher in early trading contracts sold off the rest of the day.

Weather conditions in Russia, western Australia, and Argentina were cited by traders. Russia has been getting rain in its northern winter wheat area but not in the south. Dryness is an issue in western Australia too but about half of the area is expecting some moisture. Dryness in part of Argentina is also a concern.

Weekly export inspections for wheat were 25.5 million bushels, up slightly from last week. USDA says 69 percent of the U.S. spring wheat harvest was complete to start this week.

On Monday Chicago December wheat up 9 ½ cents at 7-04 ½. December corn up 5 ½ cents at 4-41 ½. Portland soft white wheat five to 15 cents higher at mostly 6-32. Club wheat premium mostly 17 cents. HRW 11.5 % protein up a dime at 7-05. No DNS bids. Minneapolis December spring wheat up seven cents at 7-19 ½.

Cattle futures were mostly lower Monday. Traders are awaiting cash market developments and the expectation is that fed cattle may sell lower this week. Weakness in the stock market continues to raise concerns about the economy and beef demand. October live cattle down a nickel at 98-05. October feeders down 107 at 115-92. October Class III milk down 11 cents at 15-49.

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

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