Outside markets still an influence on wheat

Market Line November 30, 2009 Wheat futures were mixed Friday with contracts lower at Chicago and Kansas City, higher at Minneapolis. The weekly export sales report came in within trade expectations but outside markets put pressure on. Joe Victor of Allendale Incorporated sees outside markets continuing to influence wheat and corn.

Victor: “Primarily if we have higher energy and base metals, higher crude oil market and of course, a leading indicator that dollar. And as a hedge against inflation what the dollar wants to do is to at least get into a form of consolidation. We are likely to see the starches do the same thing, get into more of a consolidation type mode but at the same time need to keep the spreads and those ratios very much in line with the beans, corn and wheat.”

On Friday Chicago March wheat was down 3 ½ cents at 5-68. March corn up 5 ¾ cents at 4-13 ¾. USDA Market News did not report Portland prices for Thursday or Friday so as of last Wednesday soft white wheat for December held steady at mostly 4-92. Club wheat premium $3. HRW 11.5 % protein up 17 cents at 5-83. DNS 14% protein up 12 cents at 7-01 with a dime premium on Guaranteed 14 percent. No Portland barley bids.

Cattle futures posted losses Friday. Cash fed cattle sold a dollar higher last week at 85 dollars but outside markets put the pressure on contracts Friday with higher corn a bearish factor for feeder contracts. Feb live cattle down 27 cents at 85-47. January feeders down 80 at 92-50. Milk futures did not trade Friday.

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

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