Wheat futures overcome negatives; cattle contracts rally

Market Line April 16, 2010 Wheat futures closed higher Thursday despite some negative news. For instance as Joe Victor of Allendale Incorporated points out, the weekly export sales for wheat were under trade expectations.

Victor: “Call it 417-thousand tons. Trade was looking for 450 to 600-thousand tons.”

With six weeks to go in the marketing year wheat exports are at 91.5 percent of the USDA forecast.

The wheat rally also came despite a stronger dollar. Traders said early fund buying in corn and soybeans outweighed the negative factors for wheat.

On Thursday Chicago May wheat was up 5 ½ cents at 4-80 ¼. May corn up 5 ¼ cents at 3-63 ¼. Portland soft white wheat steady at mostly 4-75. New crop August soft white also steady at 4-75 to 4-80. Club wheat premium $2. HRW 11.5 % protein mixed at mostly 5-40. DNS 14% protein up a nickel at 6-93. No Portland barley bids.

Cattle futures finally posted gains Thursday for the first time this week as the week’s losses were considered overdone. Limited supply of market ready cattle and lighter carcass weights continue to provide support. Some analysts say prices have exceeded expectations. June live cattle up 135 at 94-30. May feeders up 60 at 112-80. May Class III milk up four cents at 13-12.

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

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