CFTC concerns bearish for wheat futures

Market Line July 23, 2009 Wheat futures saw some double digit losses Wednesday with Chicago and Kansas City the weakest markets. A lot of the blame went to concern about potential action the Commodity Futures Exchange Commission may take. Lynn Smith of the Zaner Group explains.

Smith: “The involvement with the CFTC looking at positions by some of the index funds has caused some dismay on the part of some of the big large funds that hold positions based on the index. There is some worry that the government is going to limit the involvement they have in the markets and of course if that is the case they are going to have to sell. They are trying to get out ahead of time apparently.”

On Wednesday Chicago September wheat was down 12 ¾ cents at 5-22. September corn down 3 ½ at 3-08. Harvest pressure and country selling pushed Portland soft white wheat prices lower yesterday with spot bids 10-25 cents lower at mostly 5-20. Club wheat mixed at mostly 6-20. August new crop soft white down 13 to 28 cents at 5-12 to 5-25. HRW 11.5 % protein down 11 cents at 5-95. DNS 14% protein down two cents at 693. No Portland barley bids.

Cattle futures were lower Wednesday as some cash fed cattle sales at 83 and 84 dollars were called disappointing. Cash feeders have been steady this week but futures got spillover pressure from live contracts. August live cattle down a dollar at 85-02. August feeders down 12 at 103-12. August Class III milk down sixteen cents at 10-58.

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

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