06/06/07 Production concerns send wheat futures higher

Market Line June 6, 2007 Wheat futures hit contract highs across the board Tuesday. Funds were buyers and the news was pretty much the same, dryness in the Ukraine, Russia and eastern Europe and a drop in U.S. wheat condition ratings. As USDA meteorologist Brad Rippey explains, this week's rains have been beneficial for northwest wheat but not in the central U.S. where harvest is underway. Rippey: "We are seeing the delays in Texas and Oklahoma. That may soon translate to delays into Kansas if the wet weather continues. The other problem is with winter wheat crop quality. You don't want to see it wet at harvest time. So disease pressure can increase." In Australia some eastern grain areas are forecast to get rain this week but not in western Australia. On Tuesday Chicago July wheat was up seven cents at 5-27 ¼. July corn down 3 ½ at 3-80 ¼. Portland cash soft white wheat five to ten cents higher at mostly $6. Club wheat 6-05. August new crop soft white up six cents at 5-67. HRW 11.5 percent protein four to six cents higher at 5-93. Dark northern spring 14% protein two to three cents higher at 6-18. Barley at the coast 165 dollars a ton. August at 160. Cattle futures were mixed Tuesday. South Korea's temporary suspension of U.S. beef imports continued to weigh on the market. August live cattle up 35 cents at 91-02. August feeders down 15 at 110-87. July Class III milk down 31 cents at 20-89. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.