Spillover Pressure and Weather Bring Wheat Markets Down

Spillover Pressure and Weather Bring Wheat Markets Down

I'm KayDee Gilkey with the Market Line Report for May 23, 2012.

The market sold off fairly sharply led by more active fund trader selling. Improving weather also hit the other grains and this bled over to the wheat markets to pressure. The U.S. dollar was higher again on Tuesday and there was some rain for the dry areas of Russia.

From the floor of the CME, Frank Lesh with Future Path Trading shares his observations of Tuesday’s markets.

Lesh: “A lot of short covering in the wheat market takes us up all the way to $7. But we went from oversold to overbought in a week’s time. So we are probably going to set back right into the middle of this range for right now. As I said weather takes the markets up and weather takes the market down and that is the way it is going to be for the next month or so.”

Chicago July Wheat ended Tuesday down 17 and 1/2 cents at 6-86 and 1/2. July corn was down 36 cents at 5-97.

Portland prices for soft white wheat and club wheat were steady to down a nickel at mostly 7-05. Hard Red Winter Wheat with 11.5 pct protein prices were down 13 cents at mostly 7-98. DNS wheat with 14 pct protein prices were down 16 cents at mostly 9-27.

June live cattle ended up 55 cents at 119-35. August Feeder cattle were up $1.03 at 160-13. June class III milk was down 3 cents at 15-41.

I'm KayDee Gilkey with the Market Line Report on the Northwest Ag Information Network.