Longs liquidate ag positions

Market Line February 23, 2011 There were some big losses across the agricultural commodities Tuesday and wheat futures were no exception with some contracts closing limit down. Bids for soft white wheat at Portland were limited as exporters assessed the market.

The political unrest in north Africa and the Middle East had investment longs reducing their risk by liquidating and going to the sidelines. Talk of rain for China’s dry winter wheat belt was also bearish.

USDA’s weekly export inspection report for wheat was up from a week ago at 31 million bushels. Exporters also reported the sale of 120-thousand metric tons of U.S. soft red winter wheat to Egypt. Other countries tendering for wheat are Iraq, Morocco and the United Arab Emirates.

On Tuesday Chicago March wheat down 60 cents at 7-62 ¼. March corn down 30 cents at 6-79 ¾. Portland soft white wheat by unit train only, no February bids. March delivery 35 to 60 cents lower at 7-90 to 8-05. No Portland club bids. No new crop soft white bids. Hard red winter 11.5 percent as much as 57 cents lower at mostly 8-96. DNS 14% protein down 50 cents at 11-24.

Concern about Middle East unrest and the global and U.S. economies hit cattle futures Tuesday too and contracts posted some heavy losses. Traders said there was also some bearish reaction to Friday’s Cattle on Feed report with the feedlot inventory and placements higher than expected. April live cattle down 150 at 113-65. March feeders down 87 at 129-20. March Class III milk up 26 cents at 18-77.

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

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