08/15/07 Wheat prices surge on Egyptian purchase

Market Line August 15, 2007 Wheat futures posted double digit gains Tuesday on some good export news and lower production estimates for France and the Ukraine. After twice ignoring the U.S. in recent wheat purchases the news Tuesday was that Egypt purchased 415-thousand metric tons of U.S. soft red winter wheat and only 25-thousand tons from Russia. Iraq is tendering for 200-thousand tons of wheat much of which is expected to be sourced from the U.S. It all has wheat futures at Chicago approaching their all-time record high which technically is $7.50 reached in March of 1996, however many traders consider $7-17 to be the high because the 7-50 was reached in a thin trade as a contract was expiring. December Chicago wheat closed at 7-11 yesterday, September was up 26 cents at 6-92 ½. Sept corn down 3 ½ at 3-27 ½. Portland cash soft white wheat was as much as 25 cents higher at mostly 6-95 with some September bids over $7 dollars, also said to be an all-time high. Club wheat 6-99. HRW 11.5 percent protein up 16 cents at 7-22. Dark northern spring wheat 14% protein up 13 cents at 7-30. Barley at the coast 185 dollars a ton. Cattle futures were higher Tuesday. Front months were said to be supported by expectations of a bullish Cattle on Feed Report this Friday. Feeders were helped by the futures discount to the CME's feeder cattle index. Oct live cattle up a dime at 95-15. Oct feeders up 15 at 116-02. Sept Class III milk down 24 cents at 19-35. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.