Lower Wheat Market Prices

Lower Wheat Market Prices

I'm KayDee Gilkey with the Market Line Report for July 25, 2012.?

Wheat futures followed the lead of corn and soybean lower on Tuesday. With spillover support that wheat had been riding to the upside gone, the market is without solid support, leaving futures vulnerable to selling pressure.
From the floor of the CME Group, Joe Vaclavik shares his observations of Tuesday’s markets.

Vaclavik: “One thing that should be noted here is that the fund position in these markets. Funds have a record long position in soybeans and a record long position in wheat. And I think that makes them particularly vulnerable to downside movement here when bearish news hits. I think that is a big part of the reason that corn has held up just a little bit better. So as we move forward, the forecast is still hot and dry. This is a big correction in this market, but I’m not necessarily certain that the highs have been put in yet.”

Chicago September Wheat ended Tuesday down 34 cents at 8-78 and 3/4. September corn ended the day down 24 cents at 7-90.
Portland prices for soft white wheat and club wheat were down 33 to 50 cents at mostly 8-52. Hard Red Winter Wheat with 11.5 pct protein prices were down 33 cents at mostly 9-29. DNS wheat with 14 pct protein prices were down 36 to 37 cents at mostly 10-32.

August live cattle ended Tuesday up 20 cents at 118-80. August Feeder cattle were up $2.03 at 137-68. August class III milk was down 11 cents at 17-71.

I'm KayDee Gilkey with the Market Line Report on the Northwest Ag Information Network.