Mixed wheat futures; lower cattle futures again

Market Line May 4, 2011 Wheat futures closed mixed Tuesday. Outside markets like a higher dollar and lower precious metals and oil pressured grains. The dry weather in the southern plains and dryness in Europe offered support. Other negatives cited were rain for China’s winter wheat and the huge wheat crop in India.

Mark Chiodo of Chiodo Commodities at the Minneapolis Grain Exchange says monthly positioning by funds was also pressuring grains.

Chiodo: “Usually it is a two day run for those folks and now one more day of pressure here that should be enough of a correction and then everybody gets done what they want to get done, and then we go back and look at the weather and see what is going on here.”

On Tuesday Chicago July wheat up 1 ½ cents at 7-93 ¼. July corn down 10 ¾ cents at 7-23 ¾. Portland soft white wheat steady at mostly 7-77. Club wheat premium at Portland mostly 17 cents. New crop August white wheat steady to a nickel lower at 7-70 to 7-90. Hard red winter 11.5 percent protein up seven cents at 9-33. DNS 14% protein down six cents at 12-13.

Cattle futures had mostly sharp losses again Tuesday. Dressed basis cash cattle dropped from last week. Consumer demand concerns remain though boxed beef prices were higher yesterday. Cash feeders were steady to higher at Oklahoma City this week. June live cattle down 135 at 110-60. August feeders down 177 at 133-05. June Class III milk down a penny at 17-38.

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

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