A big rally in wheat

Market Line December 29, 2009 Wheat futures saw 20 cent plus gains Monday. Terry Linn with the Linn Group at the Chicago Board of Trade says there wasn’t any fundamental news.

Linn: “Strength is being attributed to a combination of positioning to the long side in anticipation of beginning of the year fund buying and support of outside markets.”

Weekly wheat export inspections came in at just 10.6 million bushels, down from 13.4 million last week. Inspections need to average over 17 million bushels a week to meet USDA’s projection.

Argentina is seeing some wet weather which is impacting the harvest and perhaps wheat quality there.

On Monday Chicago March wheat was up 26 ¼ cents at 5-50 ¾. March corn up 7 ½ cents at 4-16. Portland soft white wheat five to 15 cents higher at mostly 4-95 in reaction to higher Chicago futures. Club wheat premium $3.25. Only new crop red wheat bids with August HRW 11.5 % protein up 24 cents at 6-01 to 6-11. August DNS 14% protein up 25 cents at 6-65 to 6-73. No Portland barley bids.

Optimism from last week’s cash fed cattle prices and ideas stormy winter weather in the Plains will impact cattle helped cattle futures close higher Monday. Fund buying was a feature. Feb live cattle up 62 cents at 85-37. March feeders up 112 at 94-95. February Class III milk down 13 cents at 14-10.

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

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