Wheat futures couldn't hold gains

Market Line December 2, 2009 Wheat futures saw modest losses Tuesday. The wheat market took off in the morning with a lower dollar helping but broke at mid-session as funds were sellers not buyers. Some traders cited reports that the Canadian government is moving to a forced end of a rail strike was a negative for prices. Others note that without outside help wheat fundamentals are bearish.

Louise Gartner for the Linn Group at the Chicago Board of Trade assesses where the wheat market is now.

Gartner: “The wheat market looks like it is ready to at least take out these recent twin highs. Should be the last leg up for a while in this formation.”

On Tuesday Chicago March wheat was down 4 ¾ cents at 5-84. March corn down three cents at 4-14 ½. Portland soft white wheat five to ten cents higher at mostly 5-10. Club wheat premium $3. HRW 11.5 % protein mixed at mostly 5-92. DNS 14% protein steady to down 18 cents at mostly 7-12 with a six cent premium on Guaranteed 14 percent. No Portland barley bids.

Live cattle futures were lower Tuesday with feeders showing some gains. There was some puzzlement about lower live contracts given packer bids of 83 to 84 dollars and higher boxed beef. There was some speculative buying of feeder contracts. Feb live cattle down 90 cents at 84-82. January feeders up 52 at 93-47. January Class III milk up two cents at 14-97.

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

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