More big losses for wheat futures

Market Line October 28, 2009 It was the second straight day of double digit losses for wheat futures Tuesday. A moderate rally in the U.S. dollar was cited as prompting funds to sell the grains.

Louise Gartner for the Linn Group at the Chicago Board of Trade says in three days wheat has retraced over 50 percent of the rally it took three weeks to accomplish.

Gartner: “The market didn’t appear to want to stop at the 50% and it looks like it is going to take a stab at deeper territory here. This market is clearly in a retrenchment mode regaining the downward momentum that it has seen for so many months.”

On Tuesday Chicago December wheat was down 23 ¾ cents at 5-03 ¼.

December corn down 7 ¼ at 3-70 ¾. The lower Chicago wheat futures hit Portland soft white wheat bids which were sixteen to 30 cents lower at mostly 4-80. Club wheat premium $3. HRW 11.5 % protein down 20 cents at 5-44.

DNS 14% protein mostly 6-70. No Portland barley bids.

Cattle futures were mixed Tuesday. Higher boxed beef prices provided support as did thoughts of higher cash cattle this week otherwise trading was described as featureless. December live cattle down a nickel at 87-10. January feeders up 35 at 96-35. December Class III milk down six cents at 14-69. CWT announced it had tentatively accepted 26,412 head of dairy cows in its latest herd reduction round.

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

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