Weather premium builds in wheat

Market Line May 27, 2011 Thursday was another day for strong gains in Wheat futures. Again, wet planting conditions in the U.S. and Canadian spring wheat belts was cited as a primary factor. Allen Motew of QT Weather for the Linn Group at the CME doesn’t see much relief in sight either as the first of several storms began hitting those areas yesterday.

Motew: “Storm number two hits on Monday. Storm number three, Thursday of next week and then the following Monday another storm. Each progressive one seems to want to produce rains that will keep farmers out of the field and as well as keep cooler than normal temperatures.”

Dry conditions are expected to continue next week in Europe.

On Thursday Chicago July wheat up 18 cents at 8-14 ½. July corn up 3 ¼ cents at 7-45 ½. Portland soft white wheat up a dime at mostly 8-16. Portland club wheat also 8-16. New crop August white wheat 12 to 15 cents higher at 8-15 to 8-27. Hard red winter 11.5 percent up 14 cents at 9-93. DNS 14% protein 26 to 37 cents higher at 13-03.

Cattle futures were mostly lower Thursday with positioning ahead of the Memorial Day Weekend cited as a factor. A jump in first-time unemployment claims also raised concern about beef demand though boxed beef prices have been higher lately. June live cattle down 52 cents at 104-02. August feeders down 150 at 123-02. June Class III milk up nine cents at 18-41.

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

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