Wheat Market Sharply Lower

I’m KayDee Gilkey with the Market Line Report for August 6, 2013.

Wheat futures traded sharply lower on the day Monday despite the positive demand-side data and led the Ag complex in session losses. From the floor of the CME Group, Joe Vaclavik shares his observations of Monday’s markets.

Vaclavik: “New crop export sells for corn, soybeans and wheat are ahead of USDA projections by a pretty good amount. I think that the world is really going to chew through this cheap grain out of the U.S. faster than anyone would have anticipated. We haven’t seen cheap grain here in the U.S. for two or three years now for any extended period of time. Countries like China and other importers are interested in this U.S. corn at $4 in a much bigger way than the USDA has anticipated -- wouldn’t surprise me one bit.”

Chicago September Wheat ended Monday down 15 and 1/4 cents at 6-45 and 1/4. September corn ended the day down 6 and 3/4 cents at 4-49 and 1/4.

Portland prices for soft white wheat and club wheat were down 10 and 1/4 to to 10 and 1/2 cents at 7-22 and 3/4. Hard Red Winter Wheat with 11.5 pct protein prices were down 11 and 1/4 cents at mostly 8-01 and 1/2. DNS wheat with 14 pct protein prices were down 7 and 1/2 cents at mostly 8-32 and 3/4.

October live cattle were up 7 and half cents Monday at 124-55. September Feeder cattle were steady at 157 even. September class III milk was down 3 cents at 18-39.