Greek debt situation impacts commodities

Market Line Nov. 2, 2011 Wheat futures were mixed Tuesday with Kansas City the weakest market on forecasts for rain and snow in parts of the hard red winter wheat belt. Chris Robinson with Top Third Ag Marketing at the CME says the grains were down hard early on the latest developments out of Europe.

Robinson: “Now the Greeks are going to have a referendum on whether or not they are going to participate in their austerity program. That caused a lot of panic selling.”

But wheat and corn futures came back to finish well off of the lows of the day.

Egypt purchased another 180-thousand metric tons of Russian wheat and 60-thousand from Ukraine.

On Tuesday Chicago December wheat up 1 ¾ cents at 6-30. December corn up 7 ¼ cents at 6-54 ¼. Portland soft white wheat and club wheat steady to a nickel lower at mostly 6-31. Hard red winter 11.5 percent protein down six cents at 7-83. DNS 14% protein up three cents at 10-13.

Cattle futures had big gains Tuesday with nearby live cattle limit higher. Despite negative outside markets cash cattle sales at 124 sent futures higher, triggering buy-stops. Japan’s health minister has asked the Food Safety Commission to review Japan’s restrictions on U.S. and Canadian beef imports. That could lead to more U.S. beef exports. December live cattle up $3 at 121-60. January feeders up 285 at 147-50. December Class III milk up 12 cents at 17-63.

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

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