08/18/06 Egypt buys but wheat futures fall

Marketline August 18, 2006 Wheat futures posted moderate losses Thursday with Chicago leading the way. There was support early in the session from news Egypt purchased 60-thousand tons of U.S. soft white wheat but then fund selling hit Chicago. Ryan Kelbrantz of ADM at the Minneapolis Grain Exchange, says traders were disappointed in the weekly export sales numbers reported by USDA of 387-thousand 700 tons. Kelbrantz: "We were thinking between 350 and 550. At the lower end of the range there. The numbers were two percent below last week and 13% below the four-week average. Major destinations include Japan, South Korea, Taiwan and Italy." Lacking was any confirmation of business to Iraq or India. Germany is getting rains which may be damaging the quality of their wheat crop. More rain for the U.S. southern and central Plains could be bearish for Kansas City. On Thursday September Chicago wheat was down eight cents at 3-63 ½. September corn down 2 ½ at 2-19. With that Egyptian purchase Portland cash white wheat was steady to only a penny lower at 3-96. Club wheat 4-26. HRW 11.5 percent protein down three cents at 5-05. Dark northern spring 14% protein four to six cents lower at 5-33. Cattle futures were mixed Thursday as traders awaited cash market developments and this afternoons Cattle on Feed report from USDA. Oct live cattle up 25 cents at 92-05. Oct feeders up 40 at 117-22. Sept Class III milk up 43 cents at 12-23. Yesterday USDA reported milk production in the major producing states was up 1.5 percent in July from July of 2005. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.