Spillover Pressure Lowers Wheat Market

I’m KayDee Gilkey with the Market Line Report for August 2, 2013.

After recently trying to pull corn and beans higher, Chicago wheat futures succumbed to heavy spillover pressure from those markets. From the floor of the CME Group, Scott Shellady shares his observations of Thursday’s markets.

Shellady: “Not a very pretty picture if you are a bull today. the markets are telling us A) We live in the garden of Eden and B)There are some weak longs in the markets. The strong hands right now are the shorts. There are a lot of big fund shorts. But we had double digit losses at one point of the day throughout all three of the contracts -- corn, wheat and beans. Ultimately just corn and beans finished double digits lower and wheat five cents lower. But I gotta tell you, maybe, just maybe we are seeing some capitulation in this market.”

Chicago September Wheat ended Thursday down 6 and 1/4 cents at 6-58. September corn ended the day down 11 and 1/2 cents at 4-87 and 1/2.

Portland prices for soft white wheat and club wheat were down 1 and 1/4 to 4 and 1/4 cents at 7-28 and 1/2. Hard Red Winter Wheat with 11.5 pct protein prices were steady to up nickel at mostly 8-11 and 3/4. DNS wheat with 14 pct protein prices were up a 1/2 of a cent at mostly 8-40 and 3/4. ??

October live cattle were down 97 and half cents Thursday at 124-50. September Feeder cattle were up 27 and half cents at 157-25. September class III milk was down 19 cents at 18-52.