01/07/09 Big gains in wheat futures

Market Line January 7, 2008 Wheat futures posted double digit gains in the 20-cent range Tuesday. Louise Gartner for the Linn Group at the Chicago Board of Trade says wheat futures broke above the recent trading range suggesting there may a bit more upside in the market. She says the action was mainly technical with funds and index funds buying. Gartner: "Very little fundamentals really to justify this king of a move. In fact in wheat it really defies the fundamentals, which clearly suggest that U.S. wheat prices are well above world prices and with the dollar strength recently, that even takes us more out of the market." There is chatter about the Black Sea starting to run short on milling quality wheat, which could keep it out of some upcoming tenders. Countries in the market include Saudi Arabia, Jordan, Bangladesh and Syria. On Tuesday Chicago March wheat was up 26 ¾ cents at 6-43 ½. March corn up 16 ¼ at 4-27 ½. Portland soft white wheat any protein 15 to 20 cents higher at mostly 5-90. Maximum 10.5 percent protein higher at $6. Club wheat higher at 7-40. Maximum 10.5 percent club wheat 7-50. HRW 11.5 % protein up 28 cents at 7-10. DNS 14% protein 23 to 33 cents higher at 8-75. No Portland barley bids. Live cattle futures closed higher Tuesday on increased wholesale beef movement, cash market optimism and short covering. Feeders were lower on overbought signals, profit taking and higher corn futures. Feb live cattle up a dollar at 88-55. March feeders down 75 at 95-97. Feb Class III milk down 15 cents at 10-04. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.