Wheat futures mixed; cattle bounce back

Market Line October 15, 2009 Wheat futures were slightly higher Wednesday at Chicago and Minneapolis, lower at Kansas City. Funds continued to cover their short positions and traders say a major factor Wednesday was the lower U.S. dollar. Louise Gartner for the Linn Group at the Chicago Board of Trade says that has generated some business for the U.S.

Gartner: “We did see Iraq confirm that they bought 200-thousand tonnes of U.S. wheat. Egypt came in after the close tendering. And yesterday Jordan confirmed they had bought 100-thousand tonnes of Black Sea wheat. So a lot of business going on around the world and the U.S. getting a fairly decent chunk of that business and much of that can be attributed to the very weak dollar we have seen over the last several months, finally coming home to benefit our exports.”

On Wednesday Chicago December wheat was up 1 ¾ cents at 5-13.

December corn up 1 ¼ at 3-83. Portland soft white wheat steady to a nickel higher at mostly 4-83. Club wheat premium $3.25. HRW 11.5 % protein down a penny at 5-66. DNS 14% protein up four cents at 6-78. No Portland barley bids.

Cattle futures had strong gains Wednesday. Outside markets like the DOW hitting ten-thousand plus and a lower dollar were positive as was better beef prices, which puts estimates of packer margins back in the black. Feeders followed live contracts and also got help from stronger cash prices earlier in the week. Tomorrow is a USDA Cattle on Feed report. December live cattle up 90 cents at 85-57. November feeders up 102 at 94-15. November Class III milk up three cents at 14-41.

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

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