Big wheat futures rally

Market Line December 2, 2010 Wheat futures saw 40-cent plus gains Wednesday. A lower dollar was a factor as was excessive rain in eastern Australia interrupting harvest there. Lynn Smith of the Zaner Group at Chicago says there was also bullish news from Egypt, though not for soft white wheat.

Smith: “Egypt took 220-thousand tons of U.S. hard red and soft red winter wheat. The entire tender went to the United States which tends to make us believe that maybe the other countries are starting to run out of exportable wheat at this point. If that is the case of course we will get more business from that point as well.”

On Wednesday Chicago March wheat up 49 ½ cents at 7-40. March corn up 22 ¼ cents at 5-66 ¼. Portland soft white wheat by rail only steady to a dime higher at mostly 6-55 on limited bids. Club wheat premium mostly 17 cents.

Hard red winter 11.5 percent protein 50 cents higher at 7-81. No Portland DNS bids. Minneapolis December spring wheat futures up 45 ¼ cents at 8-05 ½.

Live cattle futures were higher Wednesday with feeders lower. Strong cash markets this week for both cattle and beef helped live contracts set new highs along with a higher stock market. The sharp rise in corn futures pressured feeder contracts. February live cattle up 40 cents at 106-77. January feeders down 77 at 118-40. January Class III milk up a penny at 13-76.

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

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