Wheat futures sharply higher thanks to corn

Market Line July 1, 2010 Wheat futures posted double digit gains Wednesday despite what many commentators saw as bearish numbers from USDA for wheat; more spring wheat acres and wheat stocks than anticipated. Wheat stocks were up 48 percent from a year ago; spring wheat acreage up five percent, though total wheat acres are down eight percent.

Joe Victor of Allendale Incorporated was among the many analysts who said corn was the market driver yesterday.

Victor: “The biggest surprise of this report is fewer corn acres. I look back to 2004, it will be the first time that we see fewer corn acres in the June planted acreage report versus the March.”

Corn stocks were also bullish and wheat futures followed corn.

On Wednesday Chicago September wheat up 23 ¼ cents at 4-80 ¼. September corn up 29 ½ cents at 3-62 ¾. July and August Portland soft white wheat were five to ten cents higher at 4-60 to 4-65. Club wheat premium mostly 75 cents. August new crop HRW 11.5 % protein up to 15 cents higher at 4-93 to 5-02. DNS 14% protein for July mostly 6-21.

Cattle futures were higher Wednesday too. Cash fed cattle sales at steady money to last week, 91 dollars and higher boxed beef were supportive. The higher corn futures didn’t hurt feeders and helped deferred live contracts. August live cattle up 127 at 90-02. August feeders up 17 at 113-05. August Class III milk up 26 cents at 14-13.

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

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