11/25/08 Wheat and cattle futures rally on outside markets

Market Line November 25, 2008 Wheat futures closed sharply higher Monday. Outside influences were behind the rally in grains and Nelson Byrd with the Linn Group at the Chicago Board of Trade urges caution. Byrd: "The advance in grains was supported by a two-day 11% gain in the Dow and signs the dollar may be nearing its high. News of additional bailout for Citi Group was a sign that the government is committed to overcoming this economic turmoil. This added to bullish sentiment. However, be wary as we have seen these one-day rallies easily erased." Export inspections were more than enough on a weekly basis to meet to reach USDA's projection for the marketing year. More wet weather is forecast this week in eastern Australia and Argentina. Harvest is underway in both countries. On Monday Chicago March wheat was up 38 3/4 cents at 5-55 ¾. March corn up 16 3/4 at 3-71. Portland soft white wheat any protein ten to 20 cents higher at mostly 5-35. No November low protein bids. Club wheat higher at 5-95. HRW 11.5 % protein up 36 cents at 6-14. DNS 14% protein 19 to 31 cents higher at 8-04. No Portland barley bids. Cattle futures were also sharply higher Monday. Short covering, the higher stock market and a Cattle on Feed report interpreted as friendly took both live and feeder contracts higher. Feb live cattle up 210 at 87-60. Jan feeders up $2 at 91-40. Jan Class III milk up 11 cents at 14-26. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now t