Wheat futures higher; cattle mixed

Market Line March 17, 2010 Wheat futures recouped their losses from Monday during Tuesday’s light traded session. Lynn Smith of the Zaner Group at the Chicago Board of Trade says short covering was at work along with other factors.

Smith: “The weakness in the U.S. dollar contributed to strength across the board in the grains. You had a very strong metals market, both gold and silver. I think gold was up over $20 at the close. And I think it is just a general perception that perhaps some of the lows may have been made this past week and there is some light buying going on, though volume was pretty light in the wheat market.”

Flooding concerns in the hard red spring wheat belt were also mentioned by traders.

On Tuesday Chicago May wheat was up 7 ¾ cents at 4-87. May corn up 3 ½ cents at 3-66 ¾. Portland soft white wheat steady to a nickel higher at mostly 4-62. New crop August soft white steady to up seven cents at 4-75 to 4-85. Club wheat premium $3.67. HRW 11.5 % protein seven cents higher at 5-29. DNS 14% protein seven to 14 cents higher at mostly 6-91. No Portland barley bids.

Cattle futures were mixed Tuesday. Higher choice cutout values provided live cattle support but the market is seen as overbought. Some analysts question whether demand will hold up to the higher values. April live cattle down 17 cents at 95-47. April feeders down 17 at 105-85. April Class III milk down four cents at 12-63.

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

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