Spillover Pressure From Corn

I’m KayDee Gilkey with the Market Line Report for May 9, 2013. 
Spillover pressure from a sharply lower corn market helped to limit the upside advance for wheat futures Wednesday, but the action was mostly positioning ahead of the USDA report on Friday. From the floor of the CME Group, Todd Horwitz shares his observations of Wednesday’s markets.

Howitz: “The markets seem to be under pressure. You know we talk about weather we talk about all the different items that can affect but the bottom line is there is plenty of supply and really not enough demand. The overall trend is the grain markets are all really in true bear markets right now and every rally should be sold. That is the way I see it in the grain markets and on Wednesday the market closed mixed.”

Chicago July Wheat ended Wednesday down 3 cents at 7-06. July corn ended the day down 7 cents at 6-33.

Portland prices for soft white wheat and club wheat were up 2 to 10 cents at mostly 7-67. Hard Red Winter Wheat with 11.5 pct protein prices were up 2 and 1/4 to 7 and 1/4 cents at mostly 8-92 and 1/2. DNS wheat with 14 pct protein prices were up 1 and 1/2 to 6 and 1/2 cents at 9-32 and 1/4.

June live cattle were down Wednesday 62 and half cents at 120-20. August Feeder cattle were down $1.22 and a half at 145.32 and half. June class III milk was down 18 cents at 18-34.