06/09/06 Traders will react to USDA numbers

Marketline June 9, 2006 Grain traders will get updated production and supply and demand estimates this morning from USDA and that is expected to provide the direction for the market. Ahead of the report Thursday wheat futures were lower on weakness in outside markets and increasing harvest activity. Good soft red winter wheat yields are being reported. Christopher Modoff of R.J. O'Brian at the Chicago Board of Trade says a stronger dollar and weaker energy markets were attributed to the death of the terrorist Al Zarqarwi in Iraq. Modoff: "A lot of that coming off of talk, on the energies anyway, that the Iranians are willing to sit down on the death of Zarqarwi and certainly that has led to some liquidation selling there and that lent to some liquidation selling here." Losses were limited by talk of another tender coming from Iraq and India. On Thursday July Chicago wheat was down 4 ¼ cents at 3-83 ½. July corn down 5 ½ at 2-45 ½. Portland cash white wheat was steady to a penny lower at mostly 3-81. First half August lower at 3-88. Club wheat mostly 3-81. HRW 11.5 percent protein down three cents at 5-42. Dark northern spring 14% protein down a nickel at 5-66. No Portland barley bids. Cattle futures were higher Thursday with the exception of nearby June live cattle pressured by a lack of cash market action. The continuing firm trend in boxed beef prices provided support. Aug live cattle up seven cents at 80-63. Aug feeders up 20 at 109-60. July Class III milk up ten cents at 11-78. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.