Short covering helps wheat futures; good beef exports

Market Line April 30, 2010 Wheat futures were higher Thursday. Traders cited a lower dollar, higher stock market and higher crude oil. Some commentary mentioned continued spillover from corn futures which have been up on China’s first purchase of U.S. corn in about four years. What’s that about? USDA grain analyst Jerry Norton says there could be several reasons. One of them;

Norton: “Prices for corn in China domestically are very high. One issue could well be is that the crop last year was smaller than people had thought.”

And there have been planting delays this year. China has also been buying distiller’s dried grain indicating the need for livestock feed. But when it comes down to it Norton says;

Norton: “It is really kind of up in the air what is going on with China.”

Weekly export sales of wheat at 6. 4 million bushels were behind the ten million needed weekly to meet USDA’s export projection.

On Thursday Chicago July wheat was up 7 ½ cents at 4-95 ½. July corn up a nickel at 3-69. Portland soft white wheat a nickel higher at mostly 4-88. New crop August soft white steady to up a nickel at 4-85 to 4-95. Club wheat premium mostly $2. HRW 11.5 % protein one to eight cents higher at 5-41. DNS 14% protein three to five cents higher at mostly 6-71. No Portland barley bids.

Cattle futures were higher Thursday. Traders said strong beef exports were a positive factor with stronger outside markets adding support. Boxed beef also saw gains yesterday. There were a few more sales of fed cattle at steady money. June live cattle up 45 cents at 93-87. August feeders up 30 at 115-82. June Class III milk up a nickel at 13-95.

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

Now this.