Russian rain rough on wheat futures

Market Line October 4, 2010 Stats Canada is expected to issue an updated crop production report today. Friday wheat futures had sharp losses again, which in part traders blamed on rain in previously dry areas of Russia. Losses in corn over the surprisingly large USDA corn stocks number provided spillover pressure on wheat.

Egypt was tendering for soft wheat over the weekend. In the past two tenders it has purchased some U.S. soft white wheat. This will be for early December shipment. Iraq is also said to be in the market.

USDA says it will resurvey in the northwest and northern plains for small grain production because of the late harvest and put the results in the November report.

On Friday Chicago December wheat down 19 cents at 6-55. December corn down 30 cents at 4-65 ¾. Portland soft white wheat steady to a dime lower at mostly 5-95. Club wheat premium mostly 17 cents. No Portland red wheat bids. Minneapolis December spring wheat down 15 cents at 7-06.

Profit taking and fund selling were cited for sharply lower live cattle futures Friday. The drop in corn was also negative for live contracts but boosted feeder futures. Traders are concerned about cash fed cattle prices this week with packer margins in the red. December live cattle down 125 at 98-35. November feeders up 25 at 112-27. November Class III milk up 11 cents at 16-03.

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

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