Europe and the Korea's impact markets

Market Line May 26, 2010 Wheat futures were lower Tuesday with July Chicago setting a new contract low close. Lynn Smith of the Zaner Group at the Chicago Board of Trade comments on that.

Smith: “And it did close right at support at $4.60 but it looks like the ability to penetrate that level will allow that market to drift lower unless we have some bullish news to spark some short covering, which of course can happen at anytime because the funds are still short about 50-thousand contracts in Chicago Board of Trade wheat.”

The failure of a Spanish Bank and tensions between North and South Korea were cited as factors in commodity trading generally as the dollar posted sharp gains. U.S. crop weather is also bearish.

On Tuesday Chicago July wheat was down seven cents at 4-60 ½. July corn down 6 ¾ cents at 3-64 ¼. Portland soft white wheat steady to a nickel lower at mostly 4-65. New crop August soft white steady at 4-65 to 4-75. Club wheat premium mostly $1.50. HRW 11.5 % protein down six cents at 5-14. DNS 14% protein down seven cents at mostly 6-33.

It was triple digit losses for cattle futures Tuesday with the lower stock market getting the blame. A few cash fed sales were also reported well under last week’s prices and boxed beef was lower. August live cattle down 112 at 89-07. August feeders down 157 at 107-27. July Class III milk down 55 cents at 13-50 on a crash in cheese barrels and butter.

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

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