Wheat futures higher as cash cattle boost cattle contracts

Market Line April 8, 2010 Wheat futures were higher again Wednesday. Traders gave most of the credit to short covering after the U.S. dollar retreated from its early highs. Brian Hoops of Midwest Market Solutions in Yankton, South Dakota says there is some tendering activity out there.

Hoops: “Saudi Arabia issued a tender for 550-thousand metric tons of wheat. Japan has a tender for 157-thousand metric tons of wheat.”

Add to that list Tunisia, which is tendering for 92-thousand tons of wheat. South Korea is reportedly in talks to buy 300-thousand metric tons of wheat from Kazakhstan.

This morning is USDA’s weekly export sales report and Friday there are updated supply and demand reports.

On Wednesday Chicago May wheat was up 11 ¾ cents at 4-75 ¼. May corn up a dime at 3-56 ½. Portland soft white wheat steady to a nickel higher at mostly 4-70. New crop August soft white steady to a nickel lower at 4-65 to 4-75. Club wheat premium $3.67. HRW 11.5 % protein up a dime at mostly 5-35. DNS 14% protein up eight cents at mostly $7. No Portland barley bids.

Cattle futures posted some big gains Wednesday especially nearby April and June live cattle contracts. Strong cash markets were said to be the driving force as packers paid up for short supplies of market ready cattle. Wholesale beef buyers were also said to be playing catch up with thoughts demand could be better than expected for barbecue season. June live cattle up 117 at 94-75. May feeders up 102 at 114-25. May Class III milk down eight cents at 13-82.

I’m Bob Hoff and that’s Market Line on Northwest Aginfo Net.

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