As the dollar turns

As the dollar turns. I’m Bob Hoff. This is the Market Line

Market Line December 7, 2009 Wheat futures posted losses in the 13 cent range Friday. A sharply higher dollar and trader concern about a continued rally in the U.S currency was cited as the primary factor. Louise Gartner for the Linn Group at the Chicago Board of Trade comments.

Gartner: “The wheat market of course has plenty of bearish fundamentals and the big push over the last couple of months to the upside has been the fund involvement in the weak dollar.”

Gartner says the Commitment of Traders Report Friday did show the funds have increased their long positions in the grains including wheat.

Friday’s employment report and ideas the Fed may soon raise interest rates is what gave the dollar its strength.

On Friday Chicago March wheat was down 13 ½ cents at 5-58. March corn down 12 ¼ cents at 3-88 ½. Portland soft white wheat steady to a nickel lower at mostly 5-05. Club wheat premium $3. HRW 11.5 % protein down 13 cents at 5-78. No bids on DNS. No Portland barley bids.

Cattle futures were higher Friday after seeing pressure most of last week. That good jobs report Friday was a positive for the complex. Lower corn helped feeder contracts. Feb live cattle up 30 cents at 83-20. January feeders up 25 at 93-35. January Class III milk down 18 cents at 14-38 on a near record block-barrel cheese spread.

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

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