Grains feel outside forces

Market Line August 5, 2011 Wheat futures saw losses in the 20-cent range Thursday. Peter Georgantones at the Minneapolis Grain Exchange points to developments beyond the grain markets.

Georgantones: “We had pretty much a melt down in Europe. Economy scares carried over to us. Crude oil down 5 ½ dollars a barrel. The Dow was down.”

The dollar was up which only added to concerns about the competitiveness of U.S. wheat, particularly with the announcement of Egypt purchasing 240-thousand metric tons of wheat from Russia and Romania.

The USDA weekly export sales report for wheat did come in slightly above expectations. Cumulative white wheat exports for the marketing year are 27 million bushels, compared to 23 million at this time last year.

On Thursday Chicago September wheat down 28 ¾ cents at 6-81 ¾. September corn down 12 ¼ cents at 6-93 ¼. Portland soft white wheat and club wheat steady to a nickel lower at mostly 6-96. Hard red winter 11.5 percent protein down 27 cents at 7-99. DNS 14% protein down 22 cents at mostly 9-58.

Cattle futures were lower Thursday. Contracts were pressured by the outside market forces of lower equities, a higher dollar and selling in commodities generally. Losses were limited by higher hog futures and good exports. There are still thoughts cash fed cattle can trade higher this week. October live cattle down 60 cents at 117-67. October feeders down 120 at 135-52. September Class III milk down 15 cents at 20-16.