China impacts commodities negatively

Market Line November 15, 2010 Wheat futures closed near limit down Friday. Expectations of a Chinese interest rate hike to curb inflation impacted wheat and other commodities as that could decrease Chinese demand. Wheat followed corn and beans lower but unlike the row crops did come back a little late in the session.

Improved soil moisture in the plains and western Midwest also pressured wheat. New weekly winter wheat crop ratings will be out after the trade closes today.

The weekly exports sales report from USDA Friday was actually friendly coming in above trade expectations at 832-thousand metric tons. The trade was looking for 350 to 500-thousand tons.

On Friday Chicago December wheat down 34 ½ cents at 6-69 ¼. December corn down 30 cents at 5-34. Portland soft white wheat steady to a nickel lower at mostly 6-20. Club wheat also 6-20. No Portland red wheat bids.

Minneapolis December spring wheat futures down 32 cents at 7-44 ¾.

Cattle futures were lower Friday with commentators saying traders decided to take their money and run given the uncertainty about Chinese interest rates and the currency markets. Cash fed cattle generally sold steady last week and weekly exports were good. Boxed beef was lower. Not even sharply lower corn could help feeder contracts. December live cattle down 65 cents at 98-40. January feeders down 67 at 114-40. December Class III milk down two cents at 13-26.

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

Now this.