Long liquidation in wheat and cattle futures

Market Line Oct. 27, 2011 Wheat futures had mostly double digit losses Wednesday. Funds were said to be aggressive sellers for grains and other ag and energy markets. Greg Wagner with GWX AG Advisors at the CME says the focus is Europe.

Wagner: “The trade’s attention continues to be focused on what is going on in the Euro Zone and whether or not the meeting in Brussels is going to result in any meaningful change in order to prop up some ailing economies, ailing banks and basically the sovereign debt crisis.”

Egypt purchased 120-thousand metric tons of Russian wheat. This morning USDA issues the weekly U.S. export sales report.

On Wednesday Chicago December wheat down 16 ¾ cents at 6-19 ½. December corn down 13 ½ cents at 6-37 ¼. Portland soft white wheat and club wheat down a nickel at mostly 6-25. Hard red winter 11.5 percent protein down 18 cents at 7-84. DNS 14% protein down nine cents at mostly 9-93.

The commodity sell off hit cattle futures Wednesday as well. Live contracts suffered the most loss as feeders were supported by lower corn. Traders were still waiting for cash market developments. Some analysts say this is the correction that was anticipated. December live cattle down 155 at 120-42. November feeders down a dime at 141-70. November Class III milk up 28 cents at 17-88.

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

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