Outside markets negative for ag commodities

Market Line August 18, 2009 Wheat futures closed lower Monday with new lows set across all exchanges. Lynn Smith with the Zaner Group at the Chicago Board of Trade sums up the market factors.

Smith: “The losses in the beans and the corn market put a lot of pressure on wheat. Also weakness in crude oil and equities and a firmer U.S. dollar contributed to the bearish tone.”

Smith says the funds added to their short positions last week so they think wheat is going lower, but he cautions there could be a very sharp short covering rally before the end of August.

Weekly wheat export inspections were within trade expectations but lower than last week at just under 14-million bushels.

USDA reports the winter wheat harvest was 94 percent complete in Oregon at the start of this week, 71percent done in Washington and 59 percent cut in Idaho.

On Monday Chicago September wheat was down a dime at 4-71 ¾. September corn down a nickel at 3-14 ¼. Portland soft white wheat steady at mostly 4-85. Club wheat 6-60. HRW 11.5 % protein down nine cents at 5-35. DNS 14% protein down eight cents at 6-21. No Portland barley bids.

The drop in equities put pressure on cattle futures which closed lower Monday. Contract spreading was also a feature. Boxed beef did move higher yesterday. October live cattle down 72 cents at 87-82. October feeders down a nickel at 100-22. September Class III milk down 22 cents at 12-41.

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

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