Wheat futures rebound from negative reports

Market Line October 1, 2009 Wheat futures made new lows early in Wednesday trading but then came back to close higher on the day. Initial pressure came from USDA reports that showed a spring wheat crop larger than expected and wheat stocks higher than anticipated. But the selling dried up and funds were buyers.

Louise Gartner for the Linn Group at the Chicago Board of trade says there were key reversals at both Chicago and Kansas City.

Gartner: “It does set the stage for more upside follow through, particularly considering the time of year we are in. Wrapping up September, coming into October. The normal seasonal would have wheat rallying into late October, November anyway. So this does give us some room and give us some reasons for this market to cleanse itself from these heavy short positions and see what we can do with this kind of formation. A very impressive formation and looking good for the short term.”

On Wednesday Chicago December wheat was up a dime at 4-57 ½.

December corn up three cents at 3-44. Portland soft white wheat was mixed at mostly 4-35. Club wheat premium $3.25. HRW 11.5 % protein three to 14 cents higher at 5-19. DNS 14% protein up nine cents at 6-27. No Portland barley bids.

Most cattle future contracts closed higher Wednesday. Investment fund buying and other fund buying was given credit as was a lower dollar. The cash fed trade remained quiet. December live cattle up 52 cents at 86-12. November feeders up 85 at 96-62. November Class III milk down nine cents at 13-47.

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

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