Strong gains for wheat

Market Line December 1, 2009 Wheat futures posted gains in the teens Monday. One supportive factor was a rail strike in Canada which could impact shipments. Lynn Smith with the Zaner Group at the Chicago Board of Trade says the funds were big buyers in wheat.

Smith: “The weaker U.S. dollar sparked some short covering by the funds and the funds bought back about five-thousand contracts during the session. Again demand is not helping this market too much but I guess they are kind of looking past the weak demand indicators, at least in the near term, and looking to reduced supplies perhaps, less plantings for next year.”

Weekly export inspections for wheat came in at the low end of expectations at 14.7 million bushels.

On Monday Chicago March wheat was up 19 cents at 5-88 ¾. March corn up four cents at 4-17 ½. Portland soft white wheat five to ten cents higher at mostly 4-98. Club wheat premium $3. HRW 11.5 % protein up 12 cents at 5-95. DNS 14% protein a penny higher at 7-18 with Guaranteed 14 percent at 7-19. No Portland barley bids.

Cattle futures were higher Monday with short covering and month end positioning a feature for contracts. Beef cutouts were slightly higher Monday and packers are operating in the black. Traders were awaiting fed cattle bids and asking prices. Feb live cattle up 25 cents at 85-72. January feeders up 45 at 92-95. January Class III milk up a penny at 14-95.

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

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