Dollar rebound pressures wheat futures

Market Line November 24, 2010 Wheat futures closed lower at Chicago and Kansas City Tuesday but mixed at Minneapolis. The tension between North and South Korea helped strengthen the U.S. dollar, which traders said put pressure on wheat contracts. Losses were limited by stronger corn and soybeans.

Some traders said this week’s winter wheat crop ratings were also negative for prices with a one percent increase in the good to excellent category but dryness in the Plains remains a concern.

Parts of eastern Australia are still getting rains that are delaying the wheat harvest there.

Futures exchanges will be closed tomorrow for Thanksgiving.

On Tuesday Chicago December wheat down 3 ½ cents at 6-42. December corn up 13 ¼ cents at 5-28 ½. Portland soft white wheat unchanged at mostly 6-38 for December delivery by rail only. Club wheat mostly 6-55.

No Portland red wheat bids. Minneapolis December spring wheat futures down a penny at 7-29.

Cattle futures were steady to higher Tuesday with some new contract highs. Traders said higher corn was a factor as cattle will have to bring more to compensate feedlots for higher input costs. There are ideas cash fed cattle will trade higher this week as well. Despite higher corn feeders followed live contracts higher. December live cattle up 62 cents at 101-55. January feeders up 42 at 117-82. December Class III milk unchanged at 13-87.

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

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