Short term a little bullish for wheat

Market Line October 26, 2009 There is a lot of wheat in the world which has been a negative for wheat prices. However, Louise Gartner for the Linn Group at the Chicago Board of Trade says there are some factors out there now that provide a somewhat more bullish tone short term at least.

Gartner: “Looking at the potential of a big drop in soft red planting here in the U.S., looking at some drought issues that have developed in Ukraine and Russia, at least to start their growing season. Getting a poor stand as we head into dormancy. All of this could play into reasons why the wheat market at least will not want to take out the lows we saw here over the last month. So at least for the near term and into the winter it looks like wheat will probably find very good support on these pullbacks.”

On Friday Chicago December wheat was down four cents at 5-47 ¾.

December corn down 5 ¾ at 3-97 ¾. Portland soft white wheat steady to six cents lower at mostly 4-90. Club wheat premium $3.25. HRW 11.5 % protein three to eight cents lower at 5-83. No DNS bids. DNS 14% protein

No Portland barley bids.

The U.S. and Taiwan have signed a protocol that will allow the shipment of bone-in-beef to Taiwan with initial shipments from cattle under 30 months of age.

Cattle futures were mixed Friday. There was some profit taking and position squaring for the weekend. Issues with the corn crop has dampened feeder contract buying interest. December live cattle up two cents at 87-40. November feeders down 92 at 95-47. November Class III milk up 11 cents at 13-80.

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

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