12/02/08 A negative start to December

Market Line December 2, 2008 Wheat futures posted sharp losses Monday in what was a broad based sell off in commodities and stocks. Private trader Vic Lespinasse explains the market's concern. Lespinasse: "We are worried about a world wide recession that would reduce demand and that is very negative for prices." Lespinasse expects grain prices to recover but not until outside markets settle down. Egypt was tendering for wheat overnight. The U.S. got some Egyptian business last week. About one million metric tons of Australian wheat has been downgraded from milling quality to feed quality because of heavy rains at harvest. On Monday Chicago March wheat was down 33 ¼ cents at 5-28. March corn down 17 at 3-48 ¾. Portland soft white wheat 25 to 35 cents lower at mostly 5-15. Maximum 10.5 percent protein lower at 5-25. Club wheat any protein 5-75. A dime premium for low protein. HRW 11.5 % protein 5-94. DNS 14% protein 7-68. No Portland barley bids. Cattle futures were sharply lower Monday on long liquidation and fund selling. Traders say contracts took their lead from the lower stock market and loss in confidence in the economy, which may impact beef demand. Feb live cattle down 192 at 85-72. Jan feeders down 207 at 89-62. Jan Class III milk up a penny at 14-25. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.