Big weekly gain for wheat futures

Market Line August 2, 2010 Wheat futures continued to rally Friday with some 30 cent plus gains. For the week Chicago September gained over 65 cents. Fundamentally the reason has been crop production problems in Europe and Russia, but Joe Victor of Allendale Incorporated says it’s the money rolling into the market too.

Victor: “Whether its Minneapolis, Kansas City or Chicago, for wheat, you are not seeing a spread that narrows in or strengthens. You see a spread that is relatively unchanged. What I mean by that is you can take a look at the September and December futures, there is still plenty of carry when it comes to Chicago, Kansas or Minneapolis. Still plenty of carry for this crop. It is not a demand driven market. It is about money flow. It is about index funds, the hedge funds coming in.”

Victor says resistance for Chicago September wheat is now 6-76.

On Friday Chicago September wheat up 34 cents at 6-61 ½. September corn up 13 ½ cents at 3-92 ¾. Portland soft white wheat ten to 15 cents higher at mostly 5-50. Club wheat premium mostly 31 cents. No Portland red wheat bids. Minneapolis spring wheat futures for September up 29 ½ cents at 6-87 ¾.

Live cattle futures were higher Friday with feeders mixed. Cash fed cattle traded lower on the week but there was week-end and month-end position squaring. October live cattle up 112 at 94-60. October feeders up 37 at 115-07. September Class III milk up three cents at 15-40.

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

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