Funds fuel grain rally

Market Line November 17, 2009 There were 20 cent plus gains in wheat futures Monday as the funds were buyers in a big way. Gold hit a new record high and Louise Gartner for the Linn Group at the Chicago Board of Trade says a lower dollar was also one of many positive factors for wheat.

Gartner: “And of course other outside markets, the energies, the DOW, all sharply higher. All contributing to the mindset that the economy is rolling along, inflation will be inevitable and the funds, index funds, hedge funds, all looking at buying commodities and that is spilling over to grains. Wheat has certainly been a darling of the fund community and that is obviously continuing.”

USDA reports winter wheat planting 90 percent complete and the corn harvest 54 percent done compared to the five year average of 89 percent.

On Monday Chicago December wheat was up 23 ¼ cents at 5-62 ¼.

December corn up 11 ¾ at 4-02 ¼. Portland soft white wheat steady to eight cents higher at 4-95. Club wheat premium $3.25. HRW 11.5 % protein 16 to 19 cents higher at 5-91. DNS 14% protein up 18 cents at 7-19 with guaranteed 14 percent at 7-32. No Portland barley bids.

Cattle futures were mixed Monday. There was support from a weak dollar and higher stock market while beef demand is expected to be slow seasonally and this week’s cash fed cattle are expected to be steady to lower.

December live cattle up 25 cents at 83-57. January feeders down 20 at 92-37. December Class III milk up 12 cents at 14-53.

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

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