Wheat futures down on dollar

Market Line December 16, 2009 There were modest losses in wheat futures Tuesday. Like most commentators Mark Chiodo of Chiodo Commodities at the Minneapolis Grain Exchange says the U.S. dollar was the major reason.

Chiodo: “The dollar was up strong, 77.4 on the index. That‘s the highest I have seen it in at least a month here.”

The bearish fundamentals for wheat also continue to weigh on the market.

There were reports from the EU that planted area for wheat may be up for the largest winter wheat producers, France and Germany due to favorable planting conditions there and switching of acreage from barley to wheat.

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On Tuesday Chicago March wheat was down 6 ¾ cents at 5-36 ¾. March corn down a penny at 4-07 ½. Portland soft white wheat five to ten cents higher at mostly 5-02. Club wheat premium $3. HRW 11.5 % protein five to seven cents lower at 5-58. No Portland DNS bids. No Portland barley bids.

USDA reports that nationally, the 13 major potato states held 265 million cwt of potatoes in storage December 1, 2009, up 9 percent from a year ago but slightly below December 1, 2007.

Strong boxed beef prices and expectations of a steady cash fed cattle trade this week helped cattle futures post good gains Tuesday. Feeders followed live cattle and also benefited from front month’s discounts to the CME Feeder Cattle Index. Feb live cattle up 97 cents at 84-92. January feeders up 112 at 93-02. January Class III milk down 16 cents at 14-89.

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

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