Europe still a concern for commodities

Market Line December 6, 2011 Wheat futures closed lower Monday. Weekly export inspections for wheat at 14.5 million bushels were below trade expectations and below what is needed weekly to meet the USDA projection.

Profit taking was also noted but Greg Wagner with GWX Ag Advisors at the CME says European debt issues remain a focus.

Wagner: “Going forward this market looks like that is what it is going to be focusing on. The market has not reacted very positively to fundamental news and outside markets be coupled trading its own affair. That should continue throughout this week.”

Wagner says the trade awaits that USDA supply and demand report Friday.

On Monday Chicago March wheat down 14 cents at 6-11 ½. March corn down 4 ¼ cents at 5-91. Portland soft white wheat and club wheat steady to a nickel lower at mostly 5-93. Hard red winter 11.5 percent protein down nine cents at 7-26. DNS 14% protein down 14 cents at 9-71.

There were some limit down losses for cattle futures Monday. Lower beef prices and thoughts cash fed cattle will follow provided pressure along with technical selling. Worries about potential downgrading of European debt was also noted as an influence. February live cattle down three dollars at 120-25. January feeders down 277 at 144-30. January Class III milk up 17 cents at 17-48.

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

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