Wheat rally resumes with biggest gains yet

Market Line August 5, 2010 After a one-day pause the wheat futures rally returned Wednesday with some 40-cent plus gains. Traders said the ongoing drought in Russia continues to provide support but added that support also came from an increased tender schedule. That suggests importers need to buy wheat for the short term and they consider current price levels attractive given changes in the potential supply in the recent month.

Egypt bought some more Russian wheat and traders said Russia may be trying to show it will not curtail exports but there were unofficial reports yesterday restrictions were under discussion.

On Wednesday Chicago September wheat up 45 ¾ cents at 7-25 ¾. September corn up 10 ¾ cents at 4-00 1/4. Portland soft white wheat bids were 15 to 50 cents higher with first half August at mostly 6-10 and second half at mostly 6-24. Club wheat premium mostly 31 cents. HRW 11.5 % protein up 46 cents at mostly 6-76. No DNS bids. Minneapolis September spring wheat futures were up 35 cents at 7-32.

Cattle futures had good gains Wednesday too. Fund buying was given much of the credit. Feeders followed live cattle and the move higher triggered some technical buying. Higher corn didn’t hurt feeders. It helped deferred live contracts on thoughts of reduced fed cattle numbers down the road. October live cattle up 155 at 95-77. October feeders up a dollar at 114-87. September Class III milk up a penny at 15-14.

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

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