Wheat Market Higher Spurred by Rumor of Russian Stocks Declining

Wheat Market Higher Spurred by Rumor of Russian Stocks Declining

I’m KayDee Gilkey with the Market Line Report for Sept. 7, 2012.
Wheat closed sharply higher on Thursday. Outside markets were supportive as the Stock Market was also higher, with gains in crude oil and precious metals. From the floor of the CME Group, Joe Vaclavik shares his observations of Thursday’s markets.

Vaclavik: “The biggest story here is the big rally in the wheat market. Some rumors that there was going to be some sort of emergency meeting in Russia later this week to discuss the grain situation. They are lacking supplies there and some people think an export ban from Russia is eminent. Now we haven’t had any confirmation there, but a lot of traders thinking it is a definitely possibilities. Also some news out of the Ukraine, they are saying that export supplies may dry up as early as October or November. Certainly not good for the world export marketing; could mean more export demand for the U.S.”

Chicago September Wheat ended Thursday up 26 and 1/4 cents at 8-72. September corn ended the day up 7 and 1/2 cents at 7-97 and 1/4.
Portland prices for soft white wheat and club wheat were up a dime at mostly 8-74. Hard Red Winter Wheat with 11.5 pct protein prices were up 24 to 34 cents at mostly 9-45. DNS wheat with 14 pct protein prices were up 19 cents at mostly 9-95.

October live cattle ended Thursday down 28 cents at 126-05. September Feeder cattle were down 43 cents at 144-63. September class III milk was up 8 cents at 18-86.

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