Wheat needs some positive news

Market Line February 15, 2010 Wheat futures closed lower Friday heading into the long three-day weekend. News out of China about bank reserves being raised again was a negative for the markets. Lynn Smith with the Zaner Group at the Chicago Board of Trade says the dollar was bearish for wheat.

Smith: “Again the stronger U.S. dollar started this market out to the downside. Wheat recovered somewhat but never fully recovered those losses.”

Smith notes the weekly export sales report for wheat was above trade expectations but not really much of a bullish factor. Many analysts are saying that without a weather problem somewhere in the world there is not much reason for wheat to have a strong rally.

On Friday Chicago March wheat was down seven cents at 4-86 ½. March corn down 1 ¾ cents at 3-61 ½. Portland soft white wheat steady at mostly 4-78. New crop August soft white mixed at 4-50 to 4-70. Club wheat premium $3.67. HRW 11.5 % protein six to seven cents lower at 5-40. DNS 14% protein down six cents at 6-71. No Portland barley bids.

Cattle futures were mostly lower Friday. Cash fed cattle sold for two dollars more than the previous week but analysts say outside markets and profit taking pressured contracts. Better weather is also seen this week for feedlots. USDA will issue its monthly Cattle on Feed report this Friday. In the futures April live cattle were down 77 cents Friday at 90-77. March feeders down 70 at $100.82. March Class III milk down 19 cents at 13-77.

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

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