Outside markets influence futures

Market Line January 21, 2010 Wheat futures were mostly lower Wednesday. Contracts came off the days lows thanks to a late rally. Outside markets were said to be the driving factor and Mark Chiodo of Chiodo Commodities at the Minneapolis Grain Exchange points to the U.S. dollar in particular.

Chiodo: “Keep an eye on the U.S. dollar. It seems to be the one running it here. We have come down substantially in a week‘s time here in these markets. Something like 50 cents in the corn. About 70-80 cents in the wheat and 90 cents in the beans. It should be enough to give us a bounce here somewhere. A lot of folks are looking for that. I don’t know if it rallies much here. Barring anything else going on, and it doesn‘t seem to a lot, we are keeping a close eye on the U.S. dollar and the outside markets here.”

On Wednesday Chicago March wheat was down three cents at 4-97 ½. March corn down 1 ¼ cents at 3-68. Portland soft white wheat was steady to three cents lower at mostly 4-69. New crop August soft white five to ten cents lower at 4-65 to 4-90. Club wheat premium $3.25. HRW 11.5 % protein unchanged at 5-45. DNS 14% protein down three cents at 6-48. No Portland barley bids.

Cattle futures were mixed Wednesday. There was pressure on nearby live cattle from profit taking. Fund buying offered support. The higher U.S. dollar early in the session and the lower stock market were also cited as factors for cattle. Feb live cattle down 45 cents at 87-45. March feeders up 20 at 99-87. February Class III milk down 19 at 14-20.

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

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