Wheat and cattle futures down hard on reaction to Fed

Market Line September 23, 2011 Blame the Fed. That was the common theme of the commentary for yesterday’s commodity markets as investors sold their positions in riskier assets. The Federal Reserve has said there is a lot of downside potential for the U.S. economy. The U.S. dollar shot higher which is negative for U.S. exports. Speaking of which, U.S. weekly export sales for wheat came in above trade expectations to provide some support.

Parker McMahan of Laselle Street News at the CME says there was some negative export news too.

McMahan: “We also had a report that Egypt bought Russian wheat at $260 a metric ton. We simply were not able to hold the line on that price.”

On Thursday Chicago December wheat down 33 cents at 6-33 ¾. December corn down 35 ¾ cents at 6-50. No Portland soft white wheat or club wheat bids for September. October was down as much as 35 cents at 6-25 to 6-40.

No Portland Hard red winter bids. DNS 14% protein for September 16 to 21 cents lower at 9-20.

Cattle futures had large losses Thursday with some contracts limit down as traders fear any slow down in economic growth will hurt beef demand. Cash fed cattle sold at 116. This afternoon’s Cattle on Feed report is expected to show large placements in August. October live cattle limit down $3 at 116-25. October feeders down 2-90 at 134-60. October Class III milk up 13 cents at 17-90.

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

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