Outside Markets Pressure Wheat Down

Outside Markets Pressure Wheat Down

I'm KayDee Gilkey with the Market Line Report for June 11, 2012.

Wheat contracts were lower Friday unable to overcome pressure from the stronger U.S. Dollar Index.The market seemed to react to talk of the overbought condition after the surge higher Thursday and concerns that the surge in the US dollar is helping to discourage buyers of US wheat.

From the floor of the CME Group, Virginia McGathey with McGathey Commodities shares her observations of Friday’s markets.

McGathey: “Wheat also has some harvest pressure coming from the winter wheat and it also has the outside markets, there just isn’t enough to hold it up. With the weak corn prices, that is really bringing the wheat back in line. Wheat is still trading about $1 over the corn right now when just a few weeks ago they were trading even. We see a lot of volatility still coming in by next week.”

Chicago July Wheat ended Friday down 11 and 1/2 cents at 6-30 and 1/4. July corn ended the day up 4 cents at 5-98.

Portland prices for soft white wheat and club wheat were unchanged at mostly 6-82. Hard Red Winter Wheat with 11.5 pct protein prices were down 13 cents at mostly 7-36. DNS wheat with 14 pct protein prices were up 2 cents at mostly 9-11.

August live cattle ended up 40 cents at 120-83. August Feeder cattle were up 28 cents at 159-38. July class III milk was up 7 cents at 16-45.

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