Wheat sales boost futures

Market Line January 19, 2011 Wheat futures posted strong double digit gains Tuesday. Traders pointed to export news as a driver even if the sales weren’t all from the U.S. Turkey did buy 145-thousand metric tons of U.S. hard red winter wheat. Algeria purchased 600-thousand metric tons of French wheat and Libya bought 100 thousand tonnes. Some commentary suggested the potential unrest in many countries over food prices has sparked aggressive wheat buying.

USDA’s weekly export inspection report for wheat was actually on the light side at 21.6 million bushels.

On Tuesday Chicago March wheat up 20 cents at 7-93 ¼. March corn up 10 ¾ cents at 6-59 ½. Portland soft white wheat by rail only, a dime higher at mostly 7-75. Club wheat premium mostly 25 cents. New crop August white wheat five to 20 cents higher at 7-50 to 7-90. Hard red winter 11.5 percent protein 17 to 22 cents higher at 8-70. DNS 14% protein up sixteen cents at 10-61.

Live cattle futures were mixed Tuesday with feeders higher. Live contracts had traded nearly limit up in the session but profit taking set in. Higher boxed beef prices were a factor. Oklahoma City saw good demand for all classes of feeder cattle this week with steers and heifers five to nine dollars higher and stockers seven to ten higher. February live cattle down 17 cents at 109-20. March feeders up 65 at 127-95. February Class III milk up 12 cents at 15-12.

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

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