Row crops pressure wheat futures

Market Line July 26, 2011 Wheat futures closed lower Monday. Better weather forecast for corn and soybean areas provided some spillover pressure on wheat. Weekly export inspections for wheat were as expected at 22.4 million bushels.

Parker McMahan of LaSalle Street News at the CME says estimates out of Russia continue to get the attention of traders.

McMahan: “We also have Russian crop estimates as a whole going higher right now. The current estimates right now are above 90-million metric tons of production this year, so traders will be looking for more grain to come out of that part of the world.”

The U.S. debt ceiling situation has some traders going to the sidelines.

On Monday Chicago September wheat down 3 ¾ cents at 6-88 ½.

September corn down 11 ¼ cents at 6-78 ¾. Portland soft white wheat and club wheat up a nickel to down a nickel at mostly 6-90. New crop August white wheat also mixed at 6-75 to 7-03. Hard red winter 11.5 percent protein nine to 14 cents lower at 7-99. DNS 14% protein eight to 38 cents lower at 9-96.

Cattle futures were mixed Monday. The placement number in Friday’s Cattle on Feed Report, up four percent from a year ago, provided pressure. Analysts say cattle futures are also showing technical weakness and cash fed cattle are expected to sell a dollar lower this week than last. August live cattle up a dime at 110-65. August feeders down 35 at 136-05. August Class III milk down six cents at 21-26.

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

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