A small bounce for wheat futures

Market Line May 12, 2010 Wheat futures closed higher Tuesday with Minnesota spring wheat contracts showing the most strength. Traders say the market just ran out of sellers and the buying was mainly short covering.

USDA forecast a four percent smaller U.S. winter wheat crop but increased carryout stocks for the 2010-2011 marketing year to 997 million bushels from this year’s 950 million. Jon Marcus of Lakefront Futures and Options sees no fundamental reason for wheat prices to go higher though outside markets might create some rallies.

Marcus: “The outside markets have been, I hesitate to say wreaking havoc with the grains, but you know the markets have been looking towards the dollar, the stock market because of the volatility there. You could see wheat rally a bit if the dollar is to come off some.”

On Tuesday Chicago July wheat was up a half cent at 4-93 ¼. July corn up 6 ½ cents at 3-77. Portland soft white wheat steady at mostly 4-81 with new crop August soft white unchanged at 4-85 to 4-90. Club wheat premium mostly $1.50. HRW 11.5 % protein up two cents at mostly 5-39. DNS 14% protein steady to a nickel higher at 6-68. No Portland barley bids.

Live cattle futures were higher Tuesday with feeder contracts mixed. The strong tone to cash markets was called supportive to live cattle as is the discount of futures to cash. June live cattle up a dime at 96-80. August feeders down 32 cents at 115-60. June Class III milk up a nickel at 13-72.

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

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