Fund buying rallies wheat futures

Market Line July 14, 2009 Wheat futures had up to 20 cent plus gains Monday. Traders said funds were consistent buyers as the latest Commitments of Traders Report had shown them with a record large net short position. A higher stock market also lent support.

Joe Victor of Allendale Incorporated says however, that for wheat to maintain itself it needs to see some export business.

Victor: “Your are looking on average 45-50% of what we use is going in the form of exports. That is what is going to get the trade excited about rallying wheat and putting a firm floor under this market. September down side pressure is still very much possible only from the standpoint that we need to see the dinner bell get rung quite heavily now that the majority of the harvest is complete for winter wheat.”

India has put a ban back on wheat exports due to concerns over a recent shortfall in monsoon rains.

On Monday Chicago September wheat was up 24 cents at 5-42 ¾. September corn up 3 ½ at 3-31 ¾. Portland soft white wheat steady to six cents higher at mostly 5-50. Cub wheat mostly 6-30. August new crop soft white steady to a nickel higher at 5-47 to 5-60. HRW 11.5 % protein 20 to 23 cents higher at 6-11. DNS 14% protein up 18 cents at 7-26. No Portland barley bids.

Cattle futures also had big gains Monday though there was no real fundamental news. The higher stock market was cited in part for yesterday’s action. August live cattle up 130 at 84-77. August feeders up 87 at 103-80. August Class III milk up two cents at 10-37.

I’m Bob Hoff and that’s Market Line on the Northwest Ag Information Network.

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