06/27/07 Bulls run with wheat futures

Wheat futures closed higher Tuesday. Chicago September wheat was up 21 ½ to 6.26. Kansas City added 18 ½, Minneapolis September gained 19. The wheat markets traded near limit up as global fundamentals got bulls excited. Stats Can announced a wheat acreage of 21.7 million acres which was well below the March estimate of 23.8 million acres and trade estimates looking for 23.4 million acres. Furthermore, India is tendering to import 1 million tons of wheat. The decline in Spring Wheat condition ratings from 85% in good/ex down to 79% added further buying interests. A two percentage point decline in winter wheat ratings at 48% in good/ex was also noted. September corn unchanged at 3.67. Portland cash white up a dime at 6.18. Club White mostly 6.26, up 8. Pacific Northwest HRW 11.5 percent protein up 19 at 6.40. Dark Northern Spring 14 percent protein mostly 6.86. Live cattle closed lower on the day. Declines in the cash markets continue to drive futures prices lower. Both cash beef and cattle traded lower. August live cattle down .62 at 88.62. August feeders off 75 at 108.25. August Class III milk at Chicago down 38 at 21.02