08/14/08 Big rally in grains

Market Line August 14, 2008 Limit to near limit up moves in wheat futures Wednesday pushed Portland cash wheat prices sharply higher as well. Futures will trade with expanded limits today. Lynn Smith of the Zaner Group in Chicago says wheat's rally appeared to be mostly technical driven. Smith: "As the speculative funds covered a portion of their short positions which totaled over 25-thousand contracts as of August 5th. Spillover support from corn and beans also contributed to the buying enthusiasm." Commentary suggests some traders want to put a weather premium in the corn market due to the potential impact of frost on a late developing crop. USDA's weekly export sales report comes out this morning and is expected to show continued strong wheat sales. On Wednesday Chicago September wheat was up 60 cents at 8-50 ¼. September corn up 30 at 5-39. Portland soft white wheat 35 cents higher at mostly 8-45. Club wheat 8-55. HRW 11.5 % protein up to 67 cents higher at 9-76. DNS 14% protein 55-65 cents higher at 10-46. Barley at the coast 224 dollars a ton. Live cattle futures were steady to higher Wednesday with deferred live cattle getting support from higher corn and feeders posting large losses because of corn's big gains. Oct live cattle unchanged at 107-45. Oct feeders down 95 cents at 114-85. Sept Class III milk down 17 cents at 17-03. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.