Higher dollar hurts futures

Market Line Nov. 1, 2011 Wheat futures saw some double digit losses Monday. Mario Balleto with Citigroup Global Markets at the CME points to several reasons for lower grain futures.

Balleto: “Pressured by the stronger dollar, weaker crude oil, weaker equities. Just basically a risk off start to the week.”

Weekly export inspections for wheat came in within trade expectations. Parts of the southern plains could see more moisture later this week. Excess moisture in Ohio could reduce soft red winter wheat plantings there. USDA reports 89 percent of the U.S. winter wheat crop planted, a point ahead of average.

Egypt has purchased wheat from Ukraine for the first time since 2008. Egypt was tendering again overnite.

On Monday Chicago December wheat down 16 ¼ cents at 6-28 ¼. December corn down eight cents at 6-47. Portland soft white wheat and club wheat down five to eleven cents at mostly 6-25. Hard red winter 11.5 percent protein 7-89. DNS 14% protein mostly 10-10.

Cattle futures were mostly lower Monday. The higher dollar and weak stock market were cited as pressuring prices. Uncertainly about near-term beef demand was also a factor. December live cattle down 45 cents at 118-60. January feeders down 95 at 144-65. December Class III milk down 11 cents at 17-51.

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