Dollar up and wheat too

Market Line October 28, 2010 Despite a higher U.S. dollar wheat futures had another day of good gains Wednesday and helped the rest of the grain complex.

Traders continue to be concerned about the poor start to the 2010-2011 winter wheat crop due to dryness in various regions and also ideas farmers will plant more corn and soybeans and less wheat next spring. A University of Illinois economist says to bring corn stocks to more historical standards would require an addition 4.3 million acres of corn next year.

Short covering and fund buying were also cited in yesterday’s trading. A couple of marketing advisory services mentioned rumors of China buying some U.S. wheat or planning to import wheat to address food security but there was no confirmation of that.

Traders get USDA’s weekly export sales report this morning.

On Wednesday Chicago December wheat up 10 ¾ cents at 7-02 ¾. December corn up 6 ¼ cents at 5-77 ¼. Portland soft white wheat steady to a nickel higher at mostly 6-05. Club wheat premium mostly 25 cents. No Portland red wheat bids. Minneapolis December spring wheat futures up 12 ½ cents at 7-58 ¼.

Cattle futures were mixed on Wednesday. Live cattle got pressure from some cash sales in the Plains at 100-dollars, down a couple of dollars from last week. Fund liquidation was also noted. December live cattle down a dime at $100. January feeders down 15 at 111-77. December Class III milk unchanged at 14-89.

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

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