Wheat Futures Pressured Wednesday

I'm KayDee Gilkey with the Market Line Report for May 31, 2012.

A jump in the US dollar plus weakness in other commodity markets helped to pressure the market on Wednesday. From the floor of the CME Group, Tres Knippa with Kenai Capital shares his observations of Wednesday’s markets.

Knippa: “In the wheat market right now you’ve got harvest going pretty well. Maybe the wheat crop isn’t as big as everyone has factored in, but the numbers are still pretty darn good. So that is why the wheat market is just having a tough time getting off of its lows. And so it should. We’ve got a fair amount of wheat, and a fair amount of wheat in carryover. ”

Chicago July Wheat ended Wednesday down 3 cents at 6-53 and 3/4. July corn ended the day down 3 cents at 5-59 and 1/2.

Portland prices for soft white wheat and club wheat were steady to down a 15 cents at mostly 6-83. Hard Red Winter Wheat with 11.5 pct protein prices ranged up 6 cents to down 14 cents at mostly 7-59. DNS wheat with 14 pct protein prices were down 3 to 8 cents at mostly 9-04. 

In the cattle markets, poor consumer sentiment has traders nervous over consumer demand. The surge in the US dollar to the highest level since August of 2010 helped to pressure as well. A high US dollar discourages exports and encourages imports. 

August live cattle ended down $1.68 at 117-93. August Feeder cattle were down $1.50 at 156-08. July class III milk was up 34 cents at 16-35. 

I'm KayDee Gilkey with the Market Line Report on the Northwest Ag Information Network.