Big gains for wheat and cattle futures

Market Line February 17, 2010 Wheat futures put in double digit gains Tuesday. Terry Linn with the Linn Group at Chicago had this comment on the markets there.

Linn: “Grain markets at the Chicago Board of Trade extended gains on their recent rallies with help from the general commodity bullishness with help from a weak dollar.”

The Commodity Futures Trading Commission reported that funds were at a record number of short positions in wheat and some traders said that probably boosted buying by the funds.

Weekly export inspections for wheat were just under 16 million bushels which was called within expectations.

Australia lowered its estimate for wheat production to 21.7 million metric tons, just under a million tons less than the last USDA estimate.

On Tuesday Chicago March wheat was up 18 ½ cents at 5-05. March corn up 5 ¾ cents at 3-67 ¼. Portland soft white wheat steady at mostly 4-80. New crop August soft white steady to a nickel higher at 4-55 to 4-70. Club wheat premium $3.67. HRW 11.5 % protein 18 to 23 cents higher at mostly 5-60. DNS 14% protein 16 to 17 cents higher at mostly 6-88.

No Portland barley bids.

Cattle futures had big gains Monday. Live cattle got a boost from last week’s cash prices of 89 to 89-50. Feeder cattle also sold higher this week. The lower dollar and the higher stock market provided more upside support.

April live cattle up 140 at 92-17. March feeders up 150 at 102-32. Lower cheese and butter prices sent Class III milk future lower with the March contract down 26 cents at 13-51.

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

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