09/25/08 Bailout skepticism negative for wheat futures

Market Line September 25, 2008 Wheat futures were back to the downside Wednesday. There was talk of index fund selling, perhaps AIG, which is believed to be holding longs. Mark Chiodo of Slipka Trading at the Minneapolis Grain Exchange says Congressional negativity to a financial bailout was also bearish. Chiodo: "As long as these talks are going on and this action by the government is going on and the malaise of the economic market is hanging over everything else, in my opinion we have a hard time of rallying any significant amount and holding it." Negative fundamental news was that Iraq may be buying up to 200-thousand metric tons of Russian wheat. Egypt, which has yet to buy U.S. soft white this marketing year, was tendering overnight. The U.S. Department of Energy reports average West Coast diesel prices fell below $4 this past week for the first time since March. On Wednesday Chicago December wheat was down 20 ¼ cents at 7-30 ¼. December corn up 2 ¾ at 5-63. Portland soft white wheat steady to firm at mostly 6-70 with some premiums for maximum 10.5 protein. Club wheat 6-80. HRW 11.5 % protein down 23 to 28 cents at 8-09. DNS 14% protein down 14 cents at 9-25. No barley bids. Live cattle futures were generally steady to higher Wednesday with feeder contracts posting gains. Short covering was a feature. Oct live cattle down two cents at 102-17. Oct feeders up a dollar at 107-60. Oct Class III milk down eight cents at 17-38. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.