A technical bounce

Market Line November 18, 2010 Wheat futures had modest gains Wednesday which traders said was mainly a technical bounce of an oversold market after Tuesday’s sharp sell off. Mark Chiodo of Chiodo Commodities at the Minneapolis Grain Exchange did not think the grains had a very good close though.

Chiodo: “It felt like an anemic, somewhat poor close as the market seems to have found its bounce for now and here we sit for the time being. But nonetheless the outside markets seem to be the driver, especially the fund money and that is where we sit at the moment.”

More dry weather for areas of the plains was seen as supportive to wheat. Snow is in the forecast in the Pacific Northwest which would be welcome ahead of some single digit temperatures forecast for some areas of eastern Washington.

On Wednesday Chicago December wheat up 6 ¼ cents at 6-32 ½. December corn down ¾ of a cent at 5-25 ¾. Portland soft white wheat for December by rail only unchanged at 6-35 to 6-45. No club wheat or red wheat bids. Minneapolis December spring wheat futures up a nickel at 7-10 ½.

Live cattle futures were mostly higher Wednesday with feeders mixed. Cash fed cattle continued to sell at steady money to last week to 98-50. Boxed beef was firm. Short covering was cited as a feature. Tomorrow is a USDA Cattle on Feed Report. December live cattle up 90 cents at 99-35. January feeders down a dime at 114-75. December Class III milk up 14 cents at 13-84 on higher cheese prices.

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

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