Long liquidation and weather negative for wheat futures again

Market Line March 9, 2011 There were more double digit losses for wheat futures Tuesday. There had been some support early in the day on confirmation of an Iraqi purchase of 300-thousand metric tons of U.S. hard red winter wheat.

David Hightower of the Hightower Report from the Chicago Board of Trade sums up some of the negative forces yesterday.

Hightower: “There is a little bit of long liquidation taking place by the funds and other traders afraid of the Thursday crop report. There is also a little bit of a let down in many physical commodities as a result of uncertainty in the Middle East.”

And again weather in the U.S. hard red winter wheat belt and in China pressured wheat.

On Tuesday Chicago May wheat down 21 cents at 7-79 ¾. July new crop down 18 ¾ at 8-11 ½. May corn down 12 cents at 7-05 ½. No Portland March soft white wheat or club wheat bids. April delivery soft white at Portland was unchanged at 7-70 to 7-90 with new crop August white wheat also 7-70 to 7-90. Hard red winter 11.5 percent down 25 cents at 8-91. DNS 14% protein down 22 cents at 11-88.

Several factors were cited behind Tuesday’s big gains in cattle futures. Lower oil prices and a higher stock market were positive as were higher beef cutout values and a winter storm in the Plains that may impact cattle performance. Lower corn helped feeders. April live cattle up 120 at 114-80. April feeders up 145 at 133-15. April Class III milk down 44 cents at 17-96.

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

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