12/18/08 Lower Dollar good for grains

Market Line December 18, 2008 Wheat futures put in more gains Wednesday in a choppy session. Louise Gartner for the Linn Group at the Chicago Board of Trade says winterkill concerns for the southern plains were a factor and so was the U.S. dollar. Gartner: "The weak dollar just continuing its precipitous slide, down another couple of hundred points. That is contributing to the prospect of better competition in the export market for all the grains actually. That has provided a key basis of support for wheat. We see the grains move back into their trading ranges. That is supportive and encouraging that we probably at least have found some level of stability here." The Argentine government cut its wheat production estimate to nine million metric tons, which is 1.5 million under USDA's last estimate. On Wednesday Chicago March wheat was up 13 ½ cents at 5-57 ½. March corn down 4 ½ at 3-89 ½. Portland soft white wheat any protein a nickel higher at 5-09. Maximum 10.5 percent protein 5-24. Club wheat 6-59. Maximum 10.5 percent club wheat 6-74. No hard red winter wheat bids. DNS 14% protein seven to 12 cents higher at 8-29. No Portland barley bids. Feeder cattle futures posted big gains again Wednesday while live cattle managed to close slightly higher. There was spillover support from Tuesday's big rally. Feb live cattle up seven cents at 86-87. Jan feeders up 232 at 93-45. Jan Class III milk down 33 cents at 12-67. In the last five trading days January to April contracts have fallen a dollar-28-cents. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.