Nothing new fundamentally but wheat rallies

Market Line February 3, 2010 Wheat futures put in double digit gains Tuesday. Nothing changed much fundamentally for wheat and Joe Victor with Allendale Incorporated says it was the outside markets that again boosted grains.

Victor: “That is a perfect combination with the dollar down, higher energy, higher precious metals and of course seeing a little bit of a correction, turn around Tuesday, correcting the oversold conditions we have exhibited.”

Kansas did report a drop its winter wheat condition ratings but commentators didn’t make much of it.

On Tuesday Chicago March wheat was up 12 ½ cents at 4-87 ¼. March corn up six cents at 3-65. Portland soft white wheat steady to a nickel higher at mostly 4-87. New crop August soft white five to 30 cents higher at 4-60 to 4-95. Club wheat premium $3.33. HRW 11.5 % protein nine to eleven cents higher at 5-39. DNS 14% protein up 11 at 6-76. No Portland barley bids.

Live cattle futures were higher Tuesday with feeders mostly lower. Short covering was cited as the feature in the live pit. There was talk of at least an even cash trade this week. Feeders got pressure from a lower cash market and higher corn. April live cattle up 117 at 89-87. March feeders down 37 at 99-30. March Class III milk up 15 cents at 13-43.

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

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