Lower dollar helps wheat and cattle futures

Market Line December 14, 2010 Wheat futures were higher Monday. A lower dollar was cited and funds were buyers. Ongoing weather concerns in Australia were also supportive although the latest forecasts show less rain to interrupt harvest.

Allen Motew, meteorologist for the Linn Group at the Chicago Board of Trade, is watching northern China, which has been dry with no snowcover, but now may get some cold weather.

Motew: “Minus 15 degrees centigrade down near five degrees and may be cold in some areas Thursday as an artic blast comes down. This could some additional damage to the winter wheat there. Good thing is it is a quick hitting event and moves eastward after that. So it does not linger.”

On Monday Chicago March wheat up 4 ¾ cents at 7-80 ¼. March corn up 14 ¼ cents at 5-88 ½. Portland soft white wheat by rail only steady to 15 cents higher at mostly 7-48 on limited bids. Club wheat premium mostly 17 cents. Hard red winter 11.5 percent protein up three cents at 8-25. No Portland DNS bids. Minneapolis December spring wheat futures up 1 ½ cents at 8-71.

Cattle futures posted strong gains Monday. Outside money moved in to buy commodities and the lower dollar was seen to increase U.S. beef export opportunities. Boxed beef was higher yesterday. February live cattle up a dollar at 104-95. January feeders up 102 at 119-20. January Class III milk up 16 cents at 13-18.

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

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