Wheat to follow corn

Market Line October 11, 2010 Wheat futures saw some limit up to mostly near limit up closes Friday. A larger than expected reduction in U.S. wheat ending stocks by the USDA was friendly along with lower world wheat production and ending stocks. Traders said however, that what really caused wheat contracts to soar was corn, which was limit up all day on a nearly half billion bushel cut by USDA in its corn production estimate.

Peter Georgantones of Investment Trading Services in Minnesota says for now, corn is king.

Georgantones: “We certainly are going to follow corn higher. Corn is going to be the leader of these grains over the next six months here. No question.”

On Friday Chicago December wheat up 60 cents at 7-19 ¼. December corn up 30 cents at 5-28 ¼. Portland soft white wheat a dime higher at mostly 6-02. Club wheat premium mostly 17 cents. No Portland red wheat bids

Minneapolis December spring wheat up 58 cents to 7-64 ½.

USDA’s corn numbers were felt in cattle futures Friday where live contracts were higher on thoughts fewer cattle will be put into feedlots and cattle will be marketed at lower weights. Feeder contracts were lower as reduced placements would reduce demand. Cash fed cattle traded two dollars lower last week at 95 dollars. December live cattle up 177 at 98-87. November feeders down 132 at 107-65. November Class III milk up nine cents at 16-32.

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

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