Plains weather sparks wheat rally

Market Line February 3, 2011 Wheat futures closed with near limit up gains Wednesday. March Chicago wheat hit a new contract high. Possible crop damaging cold weather and wind pose a threat to the hard red winter wheat in parts of Kansas, Oklahoma and Texas. Allen Motew of QT Weather for the Linn Group says Wednesday morning say temperatures from minus 3 to twenty below in areas lacking adequate snow cover. This morning could be colder.

Motew: “Morning temperatures are now shown to drop to -22 in southeastern Colorado and across southwest and west Kansas we could get into the -10 to -18 range. So colder in that area.”

On Wednesday Chicago March wheat up 27 ¼ cents at 8-63. March corn up 3 ¼ cents at 6-69 ¼. Portland soft white wheat by rail only, steady to 25 cents higher at mostly 8-42. Club wheat premium at Portland mostly 17 cents. New crop August white wheat was up a dime to down a dime at 8-05 to 8-25. Hard red winter 11.5 percent up 29 cents at 9-49. DNS 14% protein up 29 cents at 11-82.

Cattle futures fell Wednesday. Winter weather, which had been viewed as bullish with its impact on cattle, was seen as bearish because of its impact on consumer buying. April live cattle down 112 at 113-52. March feeders down 167 at 125-80. March Class III milk down 40 cents at 18-04.

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

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