Wheat futures drop

Market Line November 25, 2009 Futures exchanges will be closed tomorrow for the Thanksgiving Day holiday and will see shortened trading hours on Friday. Tuesday wheat futures posted some big losses. Joe Victor of Allendale Incorporated says;

Victor: “I think folks were dealing with holiday type trade. There is going to be increased volatility.”

Traders note that the U.S. remains highly non-competitive with wheat from Europe, the Black Sea and Australia in various import markets.

Because of the Thursday holiday USDA’s weekly export sales report will be issued Friday instead of tomorrow.

On Tuesday Chicago March wheat was down 25 cents at 5-53 ½. March corn down 11 ¼ at 3-92. Portland bids are for December delivery with soft white wheat five to ten cents lower at mostly 4-89. Club wheat premium $3. HRW 11.5 % protein down 23 to 24 cents at 5-61. DNS 14% protein 22 to 23 cents lower at 6-89 with a dime premium on Guaranteed 14 percent. No Portland barley bids.

Uncertainty about what cash fed cattle will trade for during this holiday shortened weak pressured live cattle futures Tuesday. Feeder contracts were up on higher cash prices and lower corn. Feb live cattle down 32 cents at 85-50. January feeders up 35 at 93-22. January Class III milk up three cents at 14-88.

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

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