10/23/08 Stronger dollar, weaker grains

Market Line October 23, 2008 Once again forces beyond the fundamentals of grains were credited, or blamed, for sharply lower wheat futures Wednesday. In particular, Louise Gartner with the Linn Group at the Chicago Board of Trade points to the U.S. dollar, which has strengthened the last three days. Gartner: "So the U.S. dollar is at two year highs. Of course that makes other foreign currencies and that really cuts into our export competitiveness. So we are looking at the probability that exports will be under quite a bit of pressure for some time and naturally that is going to spell weakness for the grain complex." Also negative was news Egypt purchased 175-thousand metric tons of French wheat. None from the U.S. or Black Sea. On Wednesday Chicago December wheat was down 31 ¼ cents at 5-17 ¾. December corn down 26 at 3-85. The only bids at Portland for soft white wheat were for maximum 10.5 percent protein and those were down another five to 30 cents yesterday at mostly 4-85. Club wheat was down 30 to up 15 cents at mostly 5-25. HRW 11.5 % protein down 32 cents at 5-95. DNS 14% protein down 30 cents at 7-50. No Portland barley bids. The lower equity market put the pressure on cattle futures Wednesday too with live contracts suffering the greatest losses. Dec live cattle down 110 at 91-87. Nov feeders down 52 at 98-92. Nov Class III milk up seven cents at 15-79. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.