Grains rally on weather and dollar deflation

Market Line October 22, 2009 Wheat futures saw big double digit gains Wednesday. More rain and harvest delays for the row crops in the Midwest provided spillover support for wheat but the moisture is also causing concern for lagging planting progress in some large soft red winter wheat growing states as well.

The U.S. dollar was also a big factor Wednesday with the nearby dollar index futures contract hitting a new 14 ½ month low. Crude oil went over $80 a barrel.

This morning USDA issues the weekly export sales report.

On Wednesday Chicago December wheat was up 25 cents at 5-42 ½. December corn up 13 ¾ at 3-98 ¼. Portland soft white wheat eight to ten cents higher at mostly 4-85. Club wheat premium $3.25. HRW 11.5 % protein 20 cents higher at mostly 5-82. No price established on DNS with some exporters not issuing bids. No Portland barley bids.

Cattle futures were higher Wednesday and Troy Vetterkind with the Linn Group at the Chicago Board of Trade has some comments.

Vetterkind: “Corn supported live cattle prices. Also we have seen some strength in the cash market, both fat and feeder cattle, which also supported futures values.”

There were some cash fed sales at 84 dollars yesterday. In the futures

December live cattle up 92 cents at 87-07. November feeders up 102 at 96-22. November Class III milk down a dime at 13-78.

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

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