Double digit gains in wheat for futures and cash

Market Line January 27, 2011 2011 Futures as well as cash wheat prices at Portland were up strongly Wednesday. Export news was again a factor with Algeria confirming it bought 800-thousand metric tons on the world market and Iraq and Saudi Arabia also looking for wheat. USDA issues its weekly U.S. wheat export sales report this morning.

Weatherwise, Allen Motew of QT Weather for the Linn Group says the Hydro-meteorology Center sees a strong chance of spring flooding in the northern Plains spring wheat belt.

Motew: “Mainly based on the fact we have had two to eight times normal precipitation anywhere from parts of the Canadian Prairie, eastern Montana, southeastern in to Minnesota and northern Nebraska.”

On Wednesday Chicago March wheat up 18 ¼ cents at 8-56 ½. March corn up 13 ¾ cents at 6-57 ¾. Portland soft white wheat by rail only, ten to 20 cents higher at mostly 8-20. Club wheat premium mostly 17 cents at Portland. New crop August white wheat forty cents to a dime higher at 8-15 to 8-20. Hard red winter 11.5 percent protein 22 cents higher at 9-30. DNS 14% protein up 21 cents at 11-37.

Cattle futures had strong gains on Wednesday too. Short covering and chart buying from an oversold condition were cited. Higher corn was viewed as potentially reducing beef output. Spillover support from hogs was also mentioned. February live cattle up 97 cents at 107-22. March feeders up a dollar at 126-25. February Class III milk up 19 cents at 16-49.

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

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