New contract lows for wheat

Market Line December 15, 2011 Wheat futures saw double digit losses Wednesday. European debt concerns continue and the U.S. dollar was stronger which provided pressure and had commodities selling off.

The southern plains hard red winter wheat belt also continues to see more moisture in the forecasts, which was also a negative. Underlying it all are large global supplies of wheat.

Charles Nedoss with Olympus Futures at the CME says to watch the following today.

Nedoss: “Definitely keep an eye on the developments in the dollar here as a stronger dollar has definitely put pressure on the grains. Though you could see some good support under this market if we see some robust export sales numbers, which have been inspired by the most recent break.”

The USDA’s weekly export sales report is out this morning.

On Wednesday Chicago March wheat down 19 ¾ cents at 5-80 ¾. March corn down 13 ¾ cents at 5-80 ¾. Portland soft white wheat and club wheat down a nickel at mostly 5-80. Hard red winter 11.5 percent protein down 20 cents at 6-88. DNS 14% protein down 14 cents at 9-51.

Cattle futures were mixed Wednesday. Traders awaited cash fed market sales. The broad weakness in commodities provided pressure. USDA issues the monthly Cattle on Feed report tomorrow afternoon. February live cattle up 12 cents at 118-77. January feeders down 15 cents at 143-75. January Class III milk down 12 cents at 16-66.

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

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