Funds help grain rally

Market Line November 3, 2009 Wheat futures had big gains Monday. The fundamental news for wheat wasn’t that good with weekly export inspections coming in well below trade expectations at just under 12 million bushels. But Louise Gartner for the Linn Group at the Chicago Board of Trade says the funds were buyers of all grains particularly late in the session.

Gartner: “So we end up with an outside day higher in the grains. The question is, is this the beginning of another leg up or is this just part of a correction and another retest at least close to the lows in wheat.”

After the close USDA reported the U.S. corn harvest just 25 percent complete compared to the five year average of 71 percent. Winter wheat planting is 79 percent complete, 11 points behind average.

On Monday Chicago December wheat was up 22 ½ cents at 5-16 ¾.

December corn up 16 ¼ at 3-82 ¼. Portland soft white wheat a nickel higher at mostly 4-80. Club wheat premium $3.25 HRW 11.5 % protein up 21 cents at 5-56. DNS 14% protein 18 cents higher at 6-66 with guaranteed 14 percent at 6-79. No Portland barley bids.

Cattle futures were positive Monday. Short covering and the future’s discount to last week’s cash fed market were factors for live contracts as was news of an early week sale at 88 dollars in Texas. Feeders followed live cattle triggering buy stops. December live cattle up 55 cents at 86-22. January feeders up 50 at 95-57. December Class III milk down 25 cents at 14-62.

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

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