Grain futures sharply lower

Market Line September 2, 2011 Wheat futures posted some hefty losses Thursday with Minneapolis contracts fairing the best.

Joe Vaclavik with MF Global at the CME says corn led the sell off.

Vaclavik: “We did have export sales out. Export sales about in line with expectations Nothing too exciting there.”

Cumulative white wheat exports for the marketing year are just over 40-million bushels which compares to almost 37 million a year ago at this time.

A higher dollar added to a negative tone in wheat futures that included pressure from potential rain for the southern plains and continued concern about Black Sea export competition.

On Thursday Chicago December wheat down 30 ½ cents at 7-61. December corn down 29 cents at 7-38 ½. Portland soft white wheat and club wheat a penny to five cents lower for first half September at mostly 7-03. Hard red winter 11.5 percent protein down 23 cents at 9-02. DNS 14% protein down 15 cents at 10-17.

Cattle futures were mixed Thursday. Lack of a cash fed market pressured live contracts as did the falling prices for boxed beef with concerns about beef demand this fall. Feeder contracts were mostly higher. October live cattle down 42 cents at 113-60. October feeders up seven at 132-77. October Class III milk up 13 cents sat 18-75. USDA reported cheese production in July was down two percent from July of last year.

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

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