06/12/07 Wheat futures skyrocket

Market Line June 12, 2007 Limit up bids and some limit up closes was the story for wheat futures Monday. One factor is more rain in the forecast for the plains where harvest is underway. Secondly, friendly numbers from USDA Monday. The forecast for U.S. winter wheat production was dropped slightly from last month and new crop ending stocks came in below trade expectations at 443 million bushels. Mike Kruger of the Money Farm says the bottom line is the world wheat crop is getting smaller. Kruger: "There were people two months ago who were projecting that the world wheat crop this year could be as high as640 to 645 million tons. Now we sit today with an estimate of 610 and some people believe that number is still headed a little bit south because it is still not raining in some of the dry areas." Like Western Australia. On Monday Chicago July wheat was up 28 ½ cents at 5-56. July corn up 14 at 3-96. Portland cash soft white wheat steady to eight cents higher at mostly 6-05. Club wheat 6-10. August new crop soft white 14-17 cents higher at 5-82. HRW 11.5 percent protein 20-25 higher at 6-20. Dark northern spring 14% protein 21 to 25 cents higher at 6-35. Barley at the coast 165 dollars a ton. August at 159. Cattle futures were mixed Monday with nearby live cattle contracts showing gains on short covering. Sharply higher corn futures weighed feeder futures. August live cattle up forty cents at $90. August feeders down 65 at 107-55. July Class III milk up 42 cents at 21-20. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.