Funds sell commodities

Market Line May 5, 2011 Wheat futures closed lower Wednesday. Analysts said funds were active sellers in commodities generally and that spilled over to grains. There was also talk about U.S. wheat exports slowing down. A new weekly report on export sales is due out this morning.

On the bullish side it doesn’t look like planting weather is going to improve much in Canada and the northern plains. Meteorologist Allen Motew of QT Weather for the Linn Group:

Motew: “The near term shows that precipitation will be crossing fairly heavily across Saskatchewan, Manitoba, into the Canadian Prairie down into Montana, and then into North Dakota, particularly.”

Motew says there could be more moisture for those regions next week.

On Wednesday Chicago July wheat down 21 ¼ cents at 7-72. July corn up 5 ¾ cents at 7-29 ½. Portland soft white wheat steady to a nickel lower at mostly 7-73. Club wheat premium at Portland mostly 13 cents. New crop August white wheat down a nickel at 7-65 to 7-85. Hard red winter 11.5 percent protein 15 to twenty cents lower at 9-15. DNS 14% protein down 17 cents at 11-96.

Cattle futures were mixed Wednesday avoiding much of the general sell off in commodities. There was support from the discount of June live cattle to the cash market. Most of the week’s cash fed trade is considered done with prices at 115. June live cattle down a nickel at 110-55. August feeders down 12 at 132-92. June Class III milk down nine cents at 17-29.

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

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