Fund investment in commodities could be a record
Market Line November 23, 2009 Wheat futures were a few cents lower Friday. A sideways trading dollar was cited and just the general lack of price competitiveness of U.S. wheat in the world marketplace right now. Louise Gartner for the Linn Group at the Chicago Board of Trade says a report out Friday showed just how involved the funds are. Gartner: “It is estimated funds will invest a record 60-billion dollars in commodities in 2009. That is quite a bit higher than the previous peak in 2006 of 51-billion. So they like commodities. They feel the economy is stabilizing. The DOW has had a run. Metals and energies have already had much of their run so they are coming to the coming to the grain complex with they feel is fairly undervalued.” Wheat being the most undervalued in the eyes of the funds says Gartner. On Friday Chicago December wheat was down 2 ¾ cents at 5-59 ¾. December corn down four at 3-91. Portland soft white wheat steady to up a nickel at mostly 4-90. Club wheat premium $3.00 HRW 11.5 % protein 5-88. DNS 14% protein 7-16 with a two cent premium on guaranteed 14 percent. No Portland barley bids. USDA’s Cattle on Feed report pegged the November 1st feedlot inventory at 11.1 million head, up one percent from a year ago. Placements were up one percent and marketings down three percent. Ahead of the report, December live cattle up 27 cents at 83-95. January feeders up 85 at 92-67. December Class III milk up 52 cents at 14-72 on higher block and barrel cheese prices. I’m Bob Hoff and that’s Market Line on the Northwest Ag Information Network. Now this.
