Fund short covering boosts wheat futures

Market Line February 11, 2010 Wheat futures put in double digit gains Wednesday in light volume trading. There was no fundamental news for wheat. Lynn Smith with the Zaner Group says funds were the driver.

Smith: “Again it looks like a short covering rally for the funds. The funds have been heavily short especially in Chicago Board of Trade wheat. They just used this as an opportunity to take some shorts off. Technical buying with some stops above $4.90 pushed it up just over $5. It hit a high of $5.03. That is pretty strong resistance at the $5 area and that kind of backed the market off at the close.”

USDA’s weekly export sales report is delayed until tomorrow depending weather conditions in Washington D.C.

On Wednesday Chicago March wheat was up 14 ½ cents at 4-96 ¾. March corn up 3 1/14 cents at 3-61 ¾. Portland soft white wheat steady to a nickel higher at mostly 4-82. New crop August soft white steady to up a nickel at 4-60 to 4-65. Club wheat premium $3.67. HRW 11.5 % protein 15 to 19 cents higher at 5-49. DNS 14% protein mixed at mostly 6-82. No Portland barley bids.

Cattle futures closed higher Wednesday. Bad winter weather in many parts of the country was seen as keeping processors from getting cattle. USDA also notes historically low cattle weights because of weather. April live cattle up seven cents at 91-55. March feeders up 55 at 101-15. March Class III milk up 47 cents at 14-14 on higher cheese prices.

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

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