Wave of selling batters commodities

Market Line March 16, 2011 The situation in Japan set of a chain reaction of selling in grain futures Tuesday with corn and beans limit down and wheat futures putting in 50-cent plus losses. Concern over Japan’s nuclear plants added to the worries about short term grain demand following the earthquake and tsunami. Japan did tender for wheat but the volume was 76 percent less than its last tender.

Charles Nedoss of Olympus Futures at the Board of Trade says keep an eye on further developments.

Nedoss: “Look for new news, new developments out of Japan. Definitely keep an eye on that. Keep an eye on the dollar and again, any kind of developments that either worsen or we do start to get better in Japan.”

On Tuesday Chicago May wheat down 53 cents at 6-67 ¾. July new crop down 52 ½ at 7-00 ¼. May corn down 30 cents at 6-36. USDA Market News did not quote any Portland soft wheat or club wheat prices for Tuesday on lack of exporter bids. Hard red winter 11.5 percent protein down 49 cents at 7-99. DNS 14% protein 62 to 71 cents lower at mostly 10-66.

Investors also pulled the plug on cattle futures Tuesday on concern about exports to Japan as well as the impact of the Japanese situation on the world’s economy. Many contracts were limit down. There were some cash fed sales reported three dollars lower than last week’s 118. April live cattle down $3 at 113-50. April feeders down $3 at 130-65. April Class III milk down 26 cents at 16-40.

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

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