Another big day for wheat

Market Line October 2009 Tuesday was the second straight day of double digit gains for wheat futures. And once again the fundamental news for wheat wasn’t friendly as private estimates have increased expected Australian wheat production by another million tonnes to about 23 million.

A lower dollar was again good for wheat and Louise Gartner for the Linn Group at the Chicago Board of Trade says the funds were buyers.

Gartner: “Very impressive! A lot of short covering going on through the hedge funds as wheat is the last market they were aggressively short and they are bringing in those positions as the market continues to rally, especially late in the day.”

After the market closed USDA reported 64 percent of the U.S. winter wheat crop planted, five points behind average. Just 13 percent of the corn crop has been harvested, well behind the five year average of 35 percent and below trade expectations.

On Tuesday Chicago December wheat was up 17 cents at 5-11 ¼. December corn up a half cent at 3-81 ¾. Portland soft white wheat five to 17 cents higher at mostly 5-75. Club wheat premium $3.25. HRW 11.5 % protein twelve to 14 cents higher at 5-67. DNS 14% protein 11 to 16 cents higher at 6-74. No Portland barley bids.

Cattle futures had sharp losses Tuesday. Commentary says traders see 85 dollars as a top for fed cattle. Losses in the live pit have pressured feeder contracts. December live cattle down 62 cents at 84-67. November feeders down 105 at 93-12. November Class III milk down 25 cents at 14-38.

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

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