Long liquidation negative for grains

Market Line September 11, 2011 Wheat futures put in double digit losses Thursday. Analysts said long liquidation was a feature through out the day. There is concern about slower export business ahead. India okayed the export of two million metric tons of wheat and may consider more.

The U.S. dollar was higher and Michael Seery of SeeryFutures.com says the dollar could lead to more downward pressure on grains.

Seery: “In my opinion I think the highs are in in a lot of the grain markets. Especially if we start to see the Euro currency down another 200. The dollar seems to have gotten its footing. Looks to be going higher. If that is the case you are going to see lower commodity prices. And the grain prices are still very, very high. They could come down much, much more.”

Law enforcement officials say Longshoremen damaged rail cars and dumped grain at that new EGT export facility in Longview in an ongoing labor dispute there.

On Thursday Chicago December wheat down 13 ½ cents at 7-38. December corn down 14 cents at 7-34. Portland soft white wheat and club wheat steady to eight cents lower for first half September at mostly $7. Hard red winter 11.5 percent protein eight to 13 cents lower at 8-35. DNS 14% protein down 19 cents at 9-98.

Cattle futures were mostly higher Thursday with only far deferred live contracts lower. Cash fed cattle trading had not taken place yet for the week but traders are expecting better prices if action takes place today. October live cattle up 117 at 118-82. October feeders up 85 at 135-65. October Class III milk down seven cents at 18-39.

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

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