10/28/08 A bounce for grains

Market Line October 28, 2008 Wheat futures posted gains Monday on a short covering bounce in what analysts have described as a heavily oversold market. A stronger Dow early in the session was said to have provided support. Syria, Iraq and Pakistan are all reported to be in the market for wheat. Louise Gartner with the Linn Group at the Chicago Board of Trade says there are problems with the Argentine wheat harvest because of rain. Gartner: "They had been dry throughout the growing and planting season. Now that they want to harvest what little they have they are running into rain and hail just to add salt to the wound. So Argentina having a terrible production season for the most part." In its first condition rating for the winter wheat crop USDA said 65 percent of U.S. winter wheat was in good to excellent condition, ten points better than last year at this time. On Monday Chicago December wheat was up 13 ¼ cents at 5-29 ½. December corn up 12 ½ at 3-85 ¼. Both Portland soft white wheat and Maximum 10.5 percent protein soft white quoted at 4-75. Club wheat 20 to 25 cents higher at 5-15. No Portland HRW quotes. DNS 14% protein up 23 cents at 7-87. No Portland barley bids. Cattle futures were mostly higher Monday on short covering. An early session stock rally helped cattle contracts. Lower energy costs are viewed by some traders as cause for optimism towards consumer beef demand. Dec live cattle up 122 at 88-77. Jan feeders up 160 at 94-70. Dec Class III milk down two cents at 14-28. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.