Index funds boost wheat

Market Line January 5, 2010 Wheat futures started the new year with double digit gains Monday. The commentary points to index fund buying as providing support as well as short covering.

The weekly export inspection report for wheat was not friendly coming in under trade expectations at just over nine million bushels. They need to average almost double that to meet USDA projections.

Morocco has two wheat tenders totaling 350-thousand metric tons of soft wheat. One tender specifically calls for U.S. wheat. The other for EU origin grains.

On Monday Chicago March wheat was up 16 ¼ cents at 5-57 ¾. March corn up four cents at 4-18 ½. Portland soft white wheat steady to eight cents higher at mostly 5-03. New crop August soft white 4-85 to 5-20. Old crop Club wheat premium $3.25. August new crop HRW 11.5 % protein up 14 cents at 6-06 to 6-16. Last half January DNS 14% protein 6-96. No Portland barley bids.

Cattle futures closed mixed Monday. Profit taking was cited as was concern about increased competition from poultry following a Russian ban on U.S. poultry. There are doubts about packers being willing to pay more once again for fed cattle this week. Feb live cattle down 80 cents at 85-37. March feeders up seven cents at 96-32. February Class III milk down 17 cents at 13-72.

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

Now this.