10/07/08 Commodities tumble on financial turmoil

Market Line October 7, 2008 Wheat futures plummeted Monday taking Portland cash wheat prices down with them. Peter Georgantones of Investment Trading Services in Bloomington, Minnesota found it easy to sum up Monday's market. Georgantones: "Obviously a bloodbath with every other commodity. Just a bloodbath. Doesn't do any good talking about fundamentals. When the regular markets stabilize we will stabilize this and that is basically where we are at." Given the financial turmoil now spreading around the globe, traders fear the threat of a widespread and unrecoverable recession leading to reduced commodity demand. Meanwhile, frost didn't apparently do much damage to Argentina's wheat crop over the weekend. U.S weekly wheat export inspections Monday were the best in several weeks. Both Yemen and Egypt are in the market for wheat and ocean freight rates are dropping. On Monday Chicago December wheat was down 45 cents at 5-95 ¼. December corn down 30 at 4-24. Portland soft white wheat 30 to 40 cents lower at mostly $6 with some premiums for max. 10.5 protein. Club wheat 6-40. HRW 11.5 % protein down 43 cents at 6-73. DNS 14% protein down 38 cents at $8. No Portland barley bids. The influence of outside markets also hit cattle futures hard Monday with Dec live cattle down $3 at 94-77. Nov feeders down $3 at 97-80. Nov Class III milk down 27 cents at 15-35. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.