Wheat and cattle futures recover

Market Line May 27, 2010 Wheat futures bounced back Wednesday to close higher. Lynn Smith with the Zaner Group at the Chicago Board of Trade sums up Wednesday’s activity this way.

Smith: “Pretty nice day in the grains. Not too much fundamental news but based on the outside markets we had a nice close across the board.”

Short covering, and spillover strength from corn helped wheat futures though a stronger dollar limited gains.

Some very hot weather is forecast to move into the southern plains and maybe much of the central plains next week. There is divided opinion as whether that may be good or bad for the hard red winter wheat in the region.

USDA issues the weekly export sales report for wheat this morning.

On Wednesday Chicago July wheat was up 1 ¼ cents at 4-61 ¾. July corn up 7 ¼ cents at 3-71 ½. Portland soft white wheat steady at mostly 4-66. New crop August soft white steady to a nickel higher at 4-65 to 4-80. Club wheat premium mostly $1.50. HRW 11.5 % protein four to seven cents higher at mostly 5-19. DNS 14% protein six cents higher at mostly 6-39. No Portland barley bids.

Cattle futures rebounded Wednesday from the previous session’s sharp losses. Futures were seen as oversold. Better outside markets were supportive. Cash fed cattle are trading two to four dollars lower than last week. August live cattle up 85 cents at 89-92. August feeders up 102 at 108-30. July Class III milk up 15 cents at 13-65.

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

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