Wheat futures bounce back; cattle contracts mixed

Market Line January 6, 2010 Wheat futures posted double digit gains Wednesday after having traded sharply lower. Spillover support from the row crops was cited as were the continuing dry conditions in parts of the central Plains and in China. And Allen Motew with QT Weather for the Linn Group says artic air is still headed for the Plains this weekend though it may move a little eastward.

Motew: “This could be a significant change for the temperatures that follow. That is the cold air that follows as far down as far south as north Texas and Oklahoma being more skirted to the east. But it is still showing temperatures colder than this last outbreak for Kansas.”

On Wednesday Chicago March wheat up 19 cents at 8-08 ¼. March corn up 10 ¾ cents at 6-19 ¼. Portland soft white wheat by rail only, steady at mostly 7-65. Club wheat premium mostly 17 cents. New crop August white wheat steady to higher at 7-25 to 7-35. Hard red winter 11.5 percent protein up 24 cents at 8-63. DNS 14% protein up to 28 cents higher at 10-52.

Live cattle futures were higher Wednesday with feeders mixed. Despite the sell off Tuesday analysts said people wanted back in given the expectation of higher cattle prices this year. A good private employment report also helped. The gain in corn futures pressured feeders. February live cattle up 45 cents at 106-62. March feeders unchanged at 122-40. February Class III milk up three cents at 13-72.

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

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