Wheat follows corn again; this time down

Market Line August 4, 2011 Wheat futures were lower Wednesday. Analysts say outside markets like a break in the dollar and record high gold prices should have been supportive, but wheat followed corn which was down for the day. Traders were said to also lock in profits from the big run up on Tuesday.

Pressure also came from talk of a surge in Russian grain exports. USDA’s weekly export sales report for U.S. wheat will be out this morning.

On the weather front, USDA meteorologist Brad Rippey says drought is expected to continue in the Texas.

Rippey: “It looks like this drought will last through the rest of this summer and most likely begin to impact the winter wheat planting season as we head into September.”

On Wednesday Chicago September wheat down 7 ½ cents at 7-10 ½. September corn down 5 ¼ cents at 7-06. Portland soft white wheat and club wheat steady to ten cents higher at mostly 6-98. Hard red winter 11.5 percent protein down a dime at 8-26. DNS 14% protein down a nickel at 9-98.

Live cattle futures were mixed with feeders mostly lower Wednesday. Early weakness in the stock market and concerns of a weakening global economy were cited as negatives. There are still expectations of a higher cash fed market on fewer market ready cattle. October live cattle up 22 cents at 118-27. October feeders down 145 at 136-72. September Class III milk down 11 cents at 20-31.

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

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