Wheat futures down hard again

Market Line June 16, 2011 There were more big losses in grain futures Wednesday led again by corn. Lincoln Ellis with the Linn Group at the CME pointed to a stronger U.S. dollar as the big negative.

Ellis: “A significant spike up in the dollar resulting in a commodity complex wide sell off early in the day. Every commodity in the complex down and down significantly.”

Ellis say it is not clear if this week’s sell off has more to do with options expiration or something more fundamental.

Winter wheat harvest progress in the U.S. and better crop weather overseas were again mentioned by commentators.

On Wednesday Chicago July wheat down 22 ¾ cents at 7-08 ½. July corn down 29 ¾ cents at 7-25 ¾. Portland soft white wheat down a dime at mostly 7-58. Portland club wheat also 7-58. New crop August white wheat five to seven cents lower at 7-60 to 7-76. Hard red winter 11.5 percent protein 21 cents lower at 8-79. DNS 14% protein down 22 cents at 11-74.

Cattle futures were steady to lower Wednesday. The higher dollar, general commodity sell off and lower stock market were cited as factors. Traders are also looking ahead to Friday’s USDA Cattle on Feed report. August live cattle down seven cents at 104-20. August feeders down 27 at 126-97. July Class III milk down 15 cents at 19-83.

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

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