Funds helping commodities

Market Line June 1, 2009 Wheat futures had modest gains Friday as the funds continued to want to own commodities including the grains. A sharply lower U.S. dollar also helped wheat futures. Support has been coming from planting delays in Northern Plains spring wheat country and USDA will put out updated planting progress numbers after the market close today.

Louise Gartner for the Linn Group at the Chicago Board of Trade says too much moisture may be a problem in the soft red winter wheat belt too.

Gartner: “We continue to hear reports of disease increasing across much of the southern Midwest where the rains have been so persistent among hot weather. Despite talk that the weather may improve they are still suggesting we will see some yield losses and if nothing else some quality losses.”

The International Grain Councils latest estimate of world wheat production this year is about five million metric tons less than USDA’s current estimate.

On Friday Chicago July wheat was up 6 ¾ cents at 6-37 ¼. July corn up 7 ½ at 4-36 ¼. Portland soft white wheat and club wheat steady to a nickel lower at mostly 6-20 with some $1 premiums on club. August new crop soft white also steady to a nickel lower at 6-15 to 6-20. HRW 11.5 % protein up three cents at 7-17. DNS 14% protein up four cents at 8-57. No Portland barley bids.

Cattle futures saw small losses Friday as cash fed cattle sold about 50 cents lower on the week, choice cutouts were lower and there was spillover from the pork complex. August live cattle down two cents at 81-82. August feeders down seven cents at 101-75. July Class III milk down 19 cents at 11-16.

I’m Bob Hoff and that’s Market Line on the Northwest Ag Information Network.

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