Wheat and cattle futures lower on world economic worries

Market Line August 19, 2011 Wheat futures closed lower Thursday with Kansas City hit the hardest. Robert Chester is with FC Stone at the CME.

Chester: “The macroeconomic markets which are down significantly, the Dow Jones down over 400 points really weighing on the grains from the outset. Early in the morning we got export sales which certainly didn‘t help as they were disappointing to the grain markets as well.”

In other export news Egypt purchased no U.S. wheat in its latest tender, buying 240-thousand metric tons from Russia and Romania.

The northern plains is going to see some better weather for the spring wheat harvest which was also cited as a negative.

On Thursday Chicago September wheat down 19 ¾ cents at 7-07 ¾. September corn down 12 ½ cents at 6-99. Portland soft white wheat and club wheat ten to 20 cents lower at mostly 6-75. Hard red winter 11.5 percent protein as much as 28 cents lower at 8-31. No Portland DNS bids. September Minneapolis futures down six cents at 9-10 3/4.

Cattle futures saw big losses Thursday on the drop in the stock market and economic worries. Boxed beef has been sharply higher this week but little cash fed cattle trading has been done. October live cattle down $2 at 115-40. October feeders down 262 at 133-72. September Class III milk up 14 cents at 19-03 ahead of USDA reporting that July milk production in the major states was up eight-tenths of a percent from July of 2010. The Cattle on Feed Report is out this afternoon.

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