Outside forces negative for wheat and cattle futures

Market Line July 19 , 2011 Wheat futures saw modest losses on Monday. Greg Wagner of GWX AG consultants at the CME cites a couple of major reasons for the decline.

Wagner: “Slightly higher dollar, some strength in the dollar. Export inspections, all of them were below the low end of the range, corn, soybeans and wheat, from what the trade was expecting.”

There was also still talk that U.S. wheat is priced well above Russian wheat. Russia got all of an Egyptian tender last week.

After the close USDA reported the good to excellent rating for the U.S. corn crop was down three points from last week at 66 percent good to excellent.

On Monday Chicago September wheat down 5 ¼ cents at 6-89 ½. September corn down a nickel at 6-96 ¼. Portland soft white wheat and club wheat steady to a nickel higher at mostly 6-91. New crop August white wheat mixed at 6-85 to $7. Hard red winter 11.5 percent protein four to nine cents lower at 7-96. DNS 14% protein one to 11 cents lower at mostly 10-31.

The heat wave in the central U.S. took its toll on cattle futures Monday. The weather is seen as slowing consumer demand for beef. Dry weather in the southern Plains is also seen as increasing the movement of cattle to market or to feedlots. The lower stock market and higher dollar were also cited as negatives. August live cattle down 75 cents at 109-85. August feeders down 112 at 134-57. August Class III milk up 49 cents at 20-69 on higher cheese prices.

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

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