Weather issues boost grain futures

Market Line October 20, 2009 Wheat futures had double digit gains Monday. There was spillover support from the row crops as more harvest delays are expected with rain again returning to the cornbelt. Louise Gartner for the Linn Group at the Chicago Board of Trade thinks there may be more going on as wheat gained much more than corn yesterday.

Gartner: “That could be attributed partly to the weaker dollar. All kinds of suggestions. Maybe the slow pace of soft red winter planting because of the slow pace of harvest. But also I think some of this can be attributed to what happened in Australia. Over the weekend we saw frost in eastern Australia and some intense heat in western Australia. Both of which could lead to yield reductions right as we enter the harvest.”

Weekly wheat export inspections came in at 18.6 million bushels, at the higher end of expectations.

On Monday Chicago December wheat was up 19 cents at 5-17 ¾. December corn up 14 ¼ at 3-86 ¼. Portland soft white wheat up a nickel at mostly 4-70. Club wheat premium $3.25. HRW 11.5 % protein up 18 cents at 5-67.

DNS 14% protein up 15 cents at 6-76. No Portland barley bids.

Cattle futures were higher Monday. Outside markets provided support as did expectations of good cash fed cattle prices this week. USDA confirmed the H1N1 virus in a sample from a pig from the Minnesota State Fair but the markets ignored the news. December live cattle up 65 at 86-45. November feeders up 40 at 95-52.

November Class III milk down 28 cents at 13-52 on lower block and barrel cheese prices.

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

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