10/30/08 A big short covering bounce

Market Line October 30, 2008 Grain futures including wheat posted a sharp rally Thursday thanks to a falling U.S. dollar. There was only a minimal response for cash soft white wheat. Louise Gartner with the Linn Group at Chicago says contracts were limit higher at times. She called it a short covering bounce particularly for wheat as there was no positive fundamental news. Gartner: "In fact the demand that had been showing up around the world on these lower prices has not been coming to the United States. We had Jordan buying 100-thousand tons rumored to be from the Black Sea. Egypt tendered, they bought 120-thousand tons from Russia. So clearly we are struggling in this export arena despite sharply lower freight costs." On Wednesday Chicago December wheat was up 47 ¼ cents at 5-61 ¼. December corn up 30 at 4-20 ¾. Portland soft white wheat up just a nickel at 4-80. Maximum 10.5 percent protein mostly 4-90. Club wheat 5-05. Max 10.5 protein 5-30. No hard red winter wheat bids. DNS 14% protein up to 49 cents higher at 8-47. No Portland barley bids. Cattle futures soared higher Wednesday too. Live cattle got a boost from higher cash prices and higher corn. Feeders followed and also benefited from contract discounts to the CME index. Dec live cattle up 212 at 89-55. Jan feeders up 180 at 94-90. Milk futures joined the rally with Dec Class III milk up 22 cents at 14-49. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.