Weather rally extends wheat gains

Market Line July 8, 2010 Foreign weather continued to drive wheat futures higher Wednesday. Funds were buyers as concerns continued about hot, dry weather in Europe, the Ukraine and Russia. Peter Georgantones of Investment Trading Services in Bloomington, Minnesota still isn’t a believer despite the double digit gains.

Georgantones: “We just have too much carry out. I think the price is still to high. I thought if we got Chicago December to about $5.55 that would be a good sale and that‘s where I start selling it. I am going to wait a little bit on Minneapolis. Don‘t see anything in the way of news. They are trying to talk dry in the Ukraine and this and that, but that is really stretching from everybody I talk to here.”

Tomorrow is USDA’s crop production and supply and demand reports.

On Wednesday Chicago September wheat up 23 cents at 5-30 ½. September corn up 10 ¼ cents at 3-78 ¼. Portland soft white wheat was two to five cents higher at mostly 4-72. New crop August soft white two to ten cents higher at 4-70 to 4-80. Club wheat premium mostly 37 cents. HRW 11.5 % protein up 25 cents at 5-44. DNS 14% protein 21 to 22 higher at mostly 6-65.

Live cattle futures were higher Wednesday with feeders mixed. Firm cash cattle and boxed beef prices were supportive to live contracts and the strong stock market was also seen as a factor. Some analysts are worried however about a double-dip recession. Higher corn pressured feeders. August live cattle up 70 cents at 90-50. August feeders up two cents at 113-55. August Class III milk up a penny at 14-63.

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

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