Dollar does in commodities

Market Line May 17, 2010 Wheat futures were lower Friday and Brian Hoops of Midwest Market Solutions thinks we will see a lower open in the grains today. The Euro was weak, the dollar hit 18 month highs and the U.S. missed out on some export business.

Hoops: “That forced funds into some big selling modes. The stock market down sharply. Crude oil down almost $3. The beans underwent some fund selling with six-thousand contracts, five-thousand in the wheat and ten-thousand corn contracts. Iraq purchased 240-thousand metric tons of wheat from Russia and Australia.”

Some commentary suggests wheat will move sideways to lower until there is some positive news.

On Friday Chicago July wheat was down 7 ½ cents at 4-71 ½. July corn down a dime at 3-63. Portland soft white wheat five to ten cents lower at mostly 4-75. New crop August soft white five to ten lower at 4-75 to 4-80.

Club wheat premium mostly $1.50. HRW 11.5 % protein down six cents at mostly 5-20. DNS 14% protein down a nickel at 6-45. No Portland barley bids.

The strong dollar and lower stock market put the pressure on cattle futures Friday which posted large losses. Traders fear global financial instability could negatively impact consumer demand for beef. Boxed beef was also lower Friday and there were feelings it could continue down this week. Feeders generally followed live contracts. August live cattle down 265 at $92. August feeders down 210 at 112-97. June Class III milk unchanged at 13-88.

I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.

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