Watch outside markets

Market Line May 21, 2010 Wheat futures were mixed at Chicago Thursday but mostly higher in Kansas City and Minneapolis. A strong U.S. dollar most of the day was a negative but prices recovered somewhat late when the dollar backed off.

Weekly export sales for wheat at 9.2 million bushels of old crop were described as neutral at best.

What will the grains do today? Here is what Joe Victor of Allendale Incorporated says to do.

Victor: “Again, take a look at the outside markets. Three minutes before the open take a look at those outside markets and take a look at the trends. Trends continue to point onward and upward for the dollar. Energy market downward. What does it tell you about the grain market.”

Washington Grain Commission economist Glenn Squires told a commission meeting yesterday that there is no reason for new crop soft white wheat to see an increase in price.

On Thursday Chicago July wheat was up a half cent at 4-69 ¾. July corn up 2 3/4 cents at 3-62. Portland soft white wheat steady to two cents lower at mostly 4-71. New crop August soft white down two cents at 4-68 to 4-75.

Club wheat premium mostly $1.50. HRW 11.5 % protein one to two cents lower at mostly 5-22. DNS 14% protein up two to three cents at 6-45. No Portland barley bids.

USDA issues its monthly Cattle on Feed Report this afternoon. Yesterday cattle futures posted some hefty losses. Lower fed cash prices this week and the outside markets provided the pressure. August live cattle down 105 at 90-47. August feeders down 215 at 110-42. July Class III milk down two cents at 14-07.

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

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