Wheat futures mixed; cattle higher

Market Line September 24, 2009 Chicago and Kansas City wheat futures closed higher Wednesday with Minneapolis contracts lower on hedge pressure. Short covering was a feature. Mention was made of some traders being impressed with pictures of a huge dust storm in Sydney Australia.

Rain is forecast for Argentina, which would be very welcome for its wheat crop. Acreage there is down about 50 percent but moisture could boost yield expectations.

Louise Gartner for the Linn Group at the Chicago Board of Trade says Brazil is now talking about increasing wheat import tariffs on grain outside the Mercosur trade block.

Gartner: “That comes as a bit of a surprise particularly considering that Argentina is not going to be able to supply them with all of their import needs and they will have to go to the outside market. But, nevertheless, they are talking about doing that.”

On Wednesday Chicago December wheat was up 4 ¼ cents at 4-60. December corn up 4 ½ at 3-30 ¼. Portland soft white wheat steady to a nickel higher at mostly 4-45. Club wheat premium $3. HRW 11.5 % protein two to 11 cents higher at mostly 5-05. DNS 14% protein one to 11 cents lower at 6-35.

No Portland barley bids.

Cattle futures were higher Wednesday. There was fund buying and short covering. Traders think this week’s cash fed cattle should trade at steady money. Feeders generally followed the live pit. October live cattle up 117 at 86-45. October feeders up 102 at 97-87. October Class III milk up three cents at 12-62.

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

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