Wheat futures higher despite negative export news

Market Line October 13, 2009 Wheat futures posted 20 cent plus gains Monday. The news for wheat wasn’t actually that good. Saudi Arabia purchased 550-thousand tons of Canadian wheat, Morocco is said to be favoring European soft wheat for its tender and Algeria has temporarily passed on a tender. On the positive side was a lower dollar and spillover support from the row crops.

Freezing temperatures may have hurt some corn. There was snow in parts of the cornbelt and Terry Linn with the Linn Group at the Chicago Board of Trade says the outlook is not good for row crop harvesting.

Linn: “Weather maps over the next five days show areas of the cornbelt will receive considerable rain coverage, which is expected to keep the already lagging harvest behind pace.”

On Monday Chicago December wheat was up 26 ¼ cents at 4-94 ¼.

December corn up 19 cents at 3-81 ¼. Portland soft white wheat was 13 to 15 cents higher at mostly 4-66. Club wheat premium $3.25. HRW 11.5 % protein 26 to 31 cents higher at 5-52. DNS 14% protein 22 cents higher at 6-60. No Portland barley bids.

Live cattle futures were mostly higher Monday with feeders lower. Short covering, contract rolling, expectations of shorter feedlot show lists and outside markets, helped live cattle, while higher corn and expected higher placements in a Cattle on Feed report later this week were negative for feeder contracts. December live cattle up 35 cents at 85-30. November feeders down 30 at 94-17. November Class III milk up 13 cents at 14-63.

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

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