Dollar pressures grains; Cattle on Feed report pressures cattle contracts
Market Line May 24, 2011 Nearby wheat futures were weak but deferred contracts closed higher Monday. A surge up in the U.S. dollar and long liquidation by speculators were cited by traders as the major factors. Talk that Russia may lift its export ban after July 1st was also bearish. Weather news was a mixed bag. Weekly export inspections for wheat were about as anticipated.
After the close USDA reported spring wheat planting in the U.S. at 54 percent complete. Five year average for now is 89%. As for corn planting USDA meteorologist Brad Rippey says.
Rippey: “Corn planted now 79% complete. Still behind the five year average of 87% and of course behind last year‘s number of 92%.”
On Monday Chicago July wheat down 3 ½ cents at 8-03. July corn down 5 ½ cents at 7-54. Portland soft white wheat steady to a nickel lower at mostly 8-06. Club wheat at Portland mostly 8-06. New crop August white wheat steady at $8 to 8-15. Hard red winter 11.5 percent protein down two cents at 9-76. DNS 14% protein up a penny at 12-54.
Cattle futures were sharply lower Monday. Friday’s Cattle on Feed report was bearish with the largest May 1st feedlot inventory since 2007 and larger than expected April placements. The higher dollar was also cited and selling triggered further selling. June live cattle down 282 at 102-15. August feeders down $3 at 122-75. June Class III milk down 17 cents at 17-84.
I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.
Now this.
