Grains down on dollar

Market Line October 20, 2010 Wheat futures saw some double digit losses again Tuesday. There was some positive fundamental news on a sale of U.S. wheat to Egypt but Brian Hoops of Midwest Market Solutions says that doesn’t matter right now. He says a move up in the dollar that began Friday is the culprit.

Hoops: “And until this trend reverses in the dollar we are going to see pressure against the grains. The low Friday was 76.35. We are at 78.47. So about a two hundred point rally in the dollar. That is bearish for a whole host of commodities.”

Analysts say news that China raised a key interest in an attempt to slow economic growth and curb inflation added to the strength in the dollar.

On Tuesday Chicago December wheat down 18 ½ cents at 6-71 ½. December corn down 11 ¼ cents at 5-46. Portland soft white wheat down a nickel at mostly 5-98 on limited bids. Club wheat premium mostly 17 cents. No Portland red wheat bids. Minneapolis December spring wheat down 15 ¼ cents at 7-29 ½.

Despite the negative outside markets cattle futures were mostly higher Tuesday. More gains in boxed beef prices was given the credit along with the expectations for higher cash fed cattle this week. Lower corn was also good for feeders. December live cattle up 22 cents at 100-95. November feeders up 125 at 110-80. November Class III milk unchanged at 15-48.

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

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