Fed action and funds rally wheat and cattle futures

Market Line March 20, 2008 A big rally in wheat futures Thursday put contracts back to about where they were earlier in the week. The Fed's infusion of money into the economy and the fear of inflation drove buyers to commodities as the dollar got pounded. A lower dollar might help U.S. wheat exports but Louise Gartner for the Linn Group at the Chicago Board of Trade isn't holding her breathe. Gartner: "The problem with the wheat is enormous competition in the export market. A huge amount of old crop stocks on hand and aggressive sellers. We are looking at the EU, looking at the Black Sea. And the Black see certainly has shown it is willing to sell at any price in order the clear the market, regardless of what the price is and regardless of what the exchange rates are." On Thursday Chicago May wheat was up 25 ¼ at 5-55 ¼. May corn up 8 ¼ at 3-96 ½. Portland soft white wheat any protein steady to a dime higher at mostly 5-55. Maximum 10.5 percent protein 5-60. August new crop unchanged to up 13 cents at 5-20 to 5-58. Club wheat 7-45. Maximum 10.5 percent club wheat 7-50. HRW 11.5 % protein 18-21 cents higher at 6-51. DNS 14% protein 15 cents higher at 8-04. There will be a Cattle on Feed report this afternoon. Yesterday cattle futures had a strong rally on short covering and fund buying on a lower dollar and follow through support from the Fed's action Wednesday. April live cattle up 120 at 84-75. April feeders up 137 at 94-30. Class III milk futures saw limit to near limit up moves in the April through November contracts on higher cheese prices with April up 75 cents at 11-63. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.