Fed's action leads to higher commodities

Market Line November 5, 2010 Wheat futures posted big gains Thursday along with many other commodities. The Fed’s quantitative easing pressured the U.S. dollar which led to commodity buying in general. Traders think the break in the dollar and tightening exportable supplies of wheat out of Europe should boost demand for U.S. wheat.

The USDA’s export sales report for wheat out yesterday had sales of 20.8 million bushels, said to be at the low end of expectations. White wheat exports for the current marketing year are running 20 percent more than a year ago at this time.

Continued dry weather in some U.S. winter wheat growing areas is still a positive for prices.

On Thursday Chicago December wheat up 23 ½ cents at 7-13 ¾. December corn up nine cents at 5-90. Portland soft white wheat higher mostly 6-50 on limited bids. Club wheat premium mostly 13 cents. No Portland red wheat bids. Minneapolis December spring wheat futures up 22 ½ cents at 7-84 ¾.

Live cattle futures were mostly higher Thursday with feeders lower. The Fed’s monetary easing was cited as a positive while higher corn was good for deferred live cattle but negative for feeder contracts. December live cattle up 12 cents at 97-82. January feeders down 42 cents at 110-97. December Class III milk up 31 cents at 14-29 on action in the spot cheese market.

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

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