Grain futures fall again

Market Line April 29, 2011 Thursday was another down day for wheat futures with contracts posting losses in the 30 and forty cent range. Traders said rain for the southern plains with forecasts for more pressured prices. There is also better crop weather for China and western Europe. Weekly export sales for wheat were as expected.

Alan Knuckman of OneStopOption.com at the CME says there was a lot of unwinding in the grains.

Knuckman: “When we couldn’t go any higher we have seen some unwinding, some sharp selling, some profit taking pushing the markets lower. If we look at it the dollar index actually made new lows during the session but that did not support the grain markets at all.”

On Thursday Chicago July wheat down 34 ½ cents at 7-77 ½. July corn down 30 cents at 7-29 ¼. Portland soft white wheat for May dropped 20 cents to 7-65 to 7-85. No club wheat bid. New crop August white wheat ten to 20 cents lower at 7-65 to 7-95. Hard red winter 11.5 percent protein 38 to 43 cents lower at 9-14. DNS 14% protein 20 to 30 cents lower at mostly 12-04.

Live cattle were mixed Thursday with feeder contracts higher. Lower cash fed cattle and boxed beef pressured live cattle along with increasing concerns about consumer demand due to high fuel costs and weather in some major cities that is not conducive to barbecuing. Lower corn was good for feeders. June live cattle down 37 cents at 113-17. August feeders up 127 at 136-12. June Class III milk down 21 cents at 17-18.