Cornbelt weather outlook triggers grain futures rally

Market Line September 16, 2009 A potential change for the weather in parts of the U.S. cornbelt next week sparked a rally in grain futures Tuesday. USDA meteorologist Brad Rippey says frost is a possibility.

Rippey: “There is some frost possible across the upper Midwest into the Great Lakes region during that time period. We are still a long way away from that time frame but it is a cool air mass coming up here a week and beyond.”

And Rippey says the corn crop is running one to three weeks behind normal in development.

General short covering helped wheat futures but export news was negative. Egypt did not buy any U.S. wheat in this week’s tender though it was freight not wheat price that put U.S. grain at a disadvantage. Egypt purchased Russian wheat.

On Tuesday Chicago December wheat was up 16 ½ cents at 4-70 ½.

December corn was up 28 ¾ cents at 3-46 ½. Portland soft white wheat four to five cents higher at mostly 4-55. Club wheat premium $3. HRW 11.5 % protein 15-19 cents higher at 5-16. DNS 14% protein 25 to 38 cents higher at 6-20. No Portland barley bids.

The higher corn futures were positive for live cattle futures but negative for feeder contracts. Live cattle also got support for higher lean hog futures. Feedlots are asking 87-88 dollars a hundredweight this week. Last week’s sales were mostly at 85. October live cattle up 17 cents at 87-22. October feeders down 50 at 98-42. October Class III milk down a dime at 12-19.

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

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