Wheat futures soar in weather market

Market Line July 16, 2010 Wheat futures saw some near forty cent gains Thursday as markets continued to react to weather problems in Europe and Russia that will reduce world production this year. U.S. traders are watching the European market where wheat futures continued to set new 13 month highs. Mark Chiodo of Chiodo Commodities at the Minneapolis Grain Exchange doesn’t think the rally is over yet.

Chiodo: “Target for wheat is $6. We came short of it on the Chicago Sept but I don‘t have any doubt we will catch it before this run is over. It seems to have a lot of momentum and nobody wants to stand in the way of it yet. Funds are in control and whatever continues to happen in Europe is going to continue to affect us in the futures here. So, that‘s the gig for now.”

On Thursday Chicago September wheat up 37 ¼ cents at 5-96 ¼. September corn was up 8 ¼ cents at 3-92 ½. Portland soft white wheat steady to 20 cents higher at mostly 4-93. New crop August soft white steady to 15 cents higher at 4-80 to 5-10. Club wheat premium mostly 37 cents. There were no Portland hard red winter or dark northern spring wheat bids due to harvest and plentiful pipeline supplies to meet demand.

Live cattle futures were higher again Thursday. Cash cattle selling higher than last week at 93 to 94 dollars was supportive as was the discount of futures to the cash market. The rise in corn futures the past two days was negative for feeders which were mostly lower. August live cattle up seven cents at 92-40. August feeders down 25 at 113-37. August Class III milk up a dime at 15-06.

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

Now this.