Commodities fall

Market Line January 5, 2010 There was a general sell off in commodities Tuesday and wheat futures were part of it posting some double digit losses. A dollar rally was also negative.

Talk that up to 50 percent of Australia’s crop will be downgraded to feed wheat was supportive as was the condition of the U.S. hard red winter wheat crop. Meteorologist Allen Motew of QT Weather for the Linn Group has the latest ratings for Kansas.

Motew: “The Kansas wheat crop is 33% poor to very poor and 40% fair. So, 73% of the crop is fair or worse and that is not good news. Concern still about that crop and particularly with the brutally cold air that is on the way. We are talking temperatures ten to 20 below zero.”

That cold air is expected next week.

On Tuesday Chicago March wheat down 16 ¼ cents at 7-89 ¼. March corn down 12 cents at 6-08 ½. Portland soft white wheat by rail only, up a dime to down a nickel at mostly 7-65. Club wheat premium mostly 17 cents. New crop August white wheat down 12 cents to up a nickel at 7-11 to 7-35. Hard red winter 11.5 percent protein down 14 cents at 8-39. DNS 14% protein down 13 cents at 10-26.

The general sell off in commodities Tuesday took cattle futures lower too. Some cash fed cattle have already sold at 106-50 but later sales have dropped. Boxed beef was higher Tuesday. Feeder cattle sold higher at Oklahoma City this week on good to moderate demand. February live cattle down 80 cents at 106-17. March feeders down 62 at 122-40. February Class III milk up four cents at 13-69.

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

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