Wheat futures rebound; cattle contracts mixed

Market Line October 6, 2010 Wheat futures recovered some of their recent losses Tuesday. Traders pointed to spillover support from the row crops, a lower dollar and investor interest in buying commodities generally. The market was also seen as oversold and due for a bounce.

USDA comes out with its October supply and demand report Friday which analysts expect will show ample world supplies of wheat. One advisory firm says the emotion that engulfed the wheat market a few months back due to weather events elsewhere in the world has for now left the market.

On Tuesday Chicago December wheat up 16 ¼ cents at 6-63 ½. December corn up 19 ½ cents at 4-91. Portland soft white wheat steady at mostly 5-92 with some exporters not bidding. Club wheat premium mostly 17 cents. No Portland red wheat bids. Minneapolis December spring wheat up 16 ¼ cents at 7-12.

Live cattle futures were higher Tuesday with feeder contracts lower. The higher stock market and commodity buying in general was said to have helped live cattle even though a few cash cattle sold lower than last week. Higher corn was a negative to feeder contracts, which were also seen as priced too high given deferred live contracts prices. December live cattle up 37 cents at 97-67. November feeders down 117 at 109-50. November Class III milk up 25 cents at 16-11, a new high on higher cheese prices.

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

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