Weaker Tone in Wheat Market Tuesday

Weaker Tone in Wheat Market Tuesday

I'm KayDee Gilkey with the Market Line Report for August 8, 2012.?
The weaker wheat trade was linked to a lower corn market and profit taking before meetings are held in Russia Wednesday to discuss their domestic grain supply. Traders remain concerned over the extreme heat that has caused steep declines in Black Sea wheat production. From the floor of the CME Group, Joe Vaclavik shares his observations of Tuesday’s markets.

Vaclavik: “The next big event moving forward will be the crop production report out on Friday morning. We are going to see new supply and demand estimates from USDA. Most traders looking for a big cut in the supply side, looking for corn yields to drop any where from 15 to 20 bushels maybe even more. So we will kinda of see what happens. I think the bigger surprise will be on the demand size. I think everyone knows the crop as far as the corn and soybeans are no good. But the amount of demand destruction that has taken place really remains to be seen.”

Chicago September Wheat ended Tuesday down 4 and 1/4 cents at 8-89 and 1/2. September corn ended the day down 7 cents at 7-96.

Portland prices for soft white wheat and club wheat were steady to up a penny at mostly 8-76. Hard Red Winter Wheat with 11.5 pct protein prices were unchanged at mostly 9-43. DNS wheat with 14 pct protein prices were down 3 cents at mostly 9-83.

October live cattle ended Tuesday down 18 cents at 124-18. September Feeder cattle were up 20 cents at 139 even. September class III milk was up 7 cents at 19-19.

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