Wheat futures up despite higher dollar

Market Line November 18, 2009 Wheat futures saw more double digit gains Tuesday. This was despite a higher U.S. dollar. There was some chatter about dryness in the southern plains and not getting some of the soft red winter wheat planted but Louise Gartner for the Linn Group at the Chicago Board of Trade says it was the funds again establishing long positions that drove wheat yesterday.

Gartner: “So this grain continuing to be beholden to the funds. Plenty of talk about how wheat is undervalued. They are coming at the commodity complex in general as an asset class. They have plenty of money and it seems there is no limit to the amount of money they’ve got. So until they are done buying this wheat market is going to have very strong legs underneath it.”

On Tuesday Chicago December wheat was up 12 ½ cents at 5-74 ¾. December corn down a ¼ cent at 4-02. Portland soft white wheat three to five cents higher at mostly 4-95. Club wheat premium $3. HRW 11.5 % protein nine to 14 cents higher at 6-04. DNS 14% protein up eight cents at 7-27 with a 13 cent premium for guaranteed 14 percent. No Portland barley bids.

Cattle futures were higher Tuesday with just general fund buying of commodities cited as the main factor as expectations remain bearish for cash fed cattle this week and for Friday’s Cattle on Feed report. Weakness in corn futures during the session helped feeder contracts. December live cattle up 50 cents at 84-07. January feeders up 40 at 92-77. December Class III milk unchanged at 14-53.

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

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