Japanese quake rattles markets ahead of USDA report
Market Line April 8, 2011 Traders get the monthly update on supply and demand for commodities from the USDA this morning. Expectations are actually for an increase in U.S. wheat ending stocks. Yesterday wheat futures closed lower. Contracts had been higher early but Dustin Johnson of Ehedger at the CME says then came news of another earthquake in Japan. Johnson: “Immediately after the news broke grains overall traded lower and oil shot over $110 in the front month contract. So, overall we see this as more market volatility and when we see that, we see a lot of the big traders exit the market. They are usually pretty long.”On Thursday Chicago May wheat down nine cents at 7-73 ¼. July new crop down 9 ¼ at 8-09. May corn down 1 ¼ cents at 7-61 ¾. Portland soft white wheat steady to 15 cents lower at mostly 7-95. Club wheat premium at Portland mostly 25 cents. New crop August white wheat steady to a nickel lower at 7-80 to $8.00. Hard red winter 11.5 percent protein 17 to 22 cents lower at 9-54. DNS 14% protein 9 to 19 cents lower at mostly 12-10.
Cattle futures saw more losses Thursday as they could not recover from a sell-off triggered the earthquake in Japan. The USDA does say meat inspection by USDA would continue in any government shutdown. On Thursday June live cattle down 60 cents at 117-65. May feeders down 72 at 135-72. May Class III milk up 25 cents at 16-70 on an active cheese market.
I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.
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