Long liquidation hits wheat and cattle futures again

Market Line May 6 , 2011 The weekly export sales report for wheat came in well above trade expectations Thursday, but that didn’t matter as wheat futures posted more hefty losses. As Luisa Longo of Trade Maven at the CME points out, wheat was not alone.

Longo: “We saw massive liquidation in commodities across the board and the reason is that the dollar soared to highs that we haven‘t seen in a while.”

Longo expects the market to be highly volatile until we reach USDA’s May crop report next Wednesday.

On Thursday Chicago July wheat down 18 cents at 7-54. July corn down 20 ¾ cents at 7-08 ¾. Portland soft white wheat eight to 25 cents lower at mostly 7-59. Club wheat premium at Portland mostly 17 cents. New crop August white wheat five to 17 cents lower at 7-60 to 7-68. Hard red winter 11.5 percent protein lower by 16 to 21 cents at 8-97. DNS 14% protein down 19 cents at 11-77.

Cattle futures were caught in the commodity sell off too posting large losses. Concern about beef demand also continues. Boxed beef was lower and there were some cash fed cattle sales lower than earlier in the week at 114. There is some thought the market may be oversold. June live cattle down 80 cents at 109-75. August feeders down 117 at 131-75. June Class III milk down 19 cents at 17-10.