06/01/06 Some big losses in wheat futures

Marketline June 1, 2006 Wheat futures posted some double digit losses Wednesday as speculative longs liquidated on ideas that futures established a major top back on May 23rd and commodity funds did some month-end liquidation. Joe Victor of Allendale Incorporated says the high U.S. prices haven't been good for exports. Victor: "The U.S. was left on the sidelines when Australia did sell wheat to India. And an Egyptian firm also did sell wheat to India. Not Russia and certainly not the United States. The trade is now starting to realize that with $5 plus wheat the U.S. is keeping itself on the sidelines. Other world suppliers may get some key sales." Of course Wheat Australia had that 350-thousand ton sale to Iraq and there were also reports that Pakistan is likely to resume wheat exports after not doing so for 2 ½ years. On Wednesday July Chicago wheat was down 18 ½ cents at 3-93 ½. July corn down 3 ¼ at 2-51 ¼. Portland cash white wheat steady to four cents lower at mostly 3-84. First half August four to nine cents lower at 3-94. Club wheat 3-84. HRW 11.5 percent protein down 14 cents at 5-43. Dark northern spring 14% protein as much as nine cents lower at 5-77. No Portland barley bids. Month-end long liquidation also weighed on cattle futures Wednesday though nearby fundamentals are called positive. Aug live cattle down eighty cents at 80-08. Aug feeders down 30 at 109-13. July Class III milk down 31 cents at 11-04. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.