Wheat futures down again; cattle limit up

Market Line June 17, 2011 Big losses continued in wheat futures Thursday for the third straight day. There was spillover pressure from corn as well as from a higher dollar. Funds were active sellers.

Analysts say as liquidation continues the charts look uglier and downward price formations are beginning to become clearer. One says a downside potential for $6 July Chicago wheat now exits. The analyst notes that he’d like to believe the market is oversold but the reality may be the world is just not as worried about tightening supplies. Wheat’s been losing since Russia recently said it would resume exports next month.

On Thursday Chicago July wheat down 35 ¼ cents at 6-73 ¼. July corn down 24 ¼ cents at 7-01 ½. Portland soft white wheat steady to a nickel lower at 7-57. Club wheat at Portland mostly 7-57. New crop August white wheat nine to ten cents lower at 7-50 to 7-67. Hard red winter 11.5 percent protein down 21 cents at 8-58. DNS 14% protein up two cents to down 33 at mostly 11-58.

Thursday was called an impressive day for cattle futures with many contracts closing limit up. Higher cash fed cattle were one reason with sales of 111 to 112. Boxed beef was higher and exports were strong. This afternoon is the cattle on feed report. August live cattle up $3 at 107-20. August feeders up $3 at 129-97. July Class III milk up 26 cents at 20-09.

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

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