09/19/07 Wheat futures lower following Aussie crop estimate

Market Line September 19, 2007 Wheat futures posted modest losses Tuesday after the Australian government slashed its estimate of that nation's wheat crop from 22.5 million tons down to 15.5 million. That is better though than this past year's drought ravaged crop of 9.8 million tons . Traders regarded the Australian estimate as old news and instead focused on the overbought condition of the market. Pakistan is expected to issue a tender to buy 250-thousand to 500-thousand metric tons of wheat in the next day or two. USDA reports that 14 percent of the U.S. winter wheat crop has been planted, which compares to 17 percent last year at this time and the long term average of 18 percent. On Tuesday Chicago December wheat was down six cents at 8-69. Dec corn unchanged at 3-52 ¼. Portland cash soft white wheat six to 14 cents higher at mostly 8-90. Club wheat 8-90. No red wheat bids at Portland. Barley at the coast 260 dollars a ton. Cattle futures posted gains Tuesday. Improved wholesale beef quotes, short covering and fund buying were cited. Lower corn was also supportive. Oct live cattle up 67 cents at 95-65. Oct feeders up 95 at 116-45. Oct Class III milk down seven cents at 18-48. USDA reported Tuesday that milk production in the 23 major states during August was up 3.6 percent from August of 2006. Both production per cow and milk cow numbers were up. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.