Large gains for wheat futures

Market Line February 9, 2011 Wheat futures closed with double digit gains Tuesday. There had been some pressure early from news of another Chinese interest rate hike. That was countered by news that Jordan purchased 100-thousand metric tons of U.S. wheat. There was more focus on Chinese weather too with the United Nations warning that drought in China could further tighten global wheat supplies.

Allen Motew of QT Weather for the Linn Group says the ten day forecast does however have moisture in it for some of those dry areas of China.

Motew: “We are talking two to five inch totals possible across some of the driest areas of the southern region of the drought area and it looks like as much as an increase across the northern areas.”

This morning USDA issues the February supply and demand report.

On Tuesday Chicago March wheat up 15 ½ cents at 8-74 ¼. March corn down a penny at 6-73 ¾. Portland soft white wheat by rail only, steady to a dime higher at mostly 8-58. Club wheat premium at Portland 17 cents. New crop August white wheat steady to 15 cents higher at 8-50. Hard red winter 11.5 percent up 18 cents at 9-74. DNS 14% protein nineteen to 35 cents higher at 11-90.

Cattle futures were lower Tuesday. The premium of futures to cash continued to worry traders. Winter weather in plains may reduce weight gains but can also back cattle up. April live cattle down 50 cents at 111-25. March feeders down 32 at 124-25. March Class III milk up a nickel at 18-61.

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

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