Wheat futures soar

Market Line May 19, 2011 Wheat futures closed limit up 60 cents to near limit up on Wednesday with the funds coming back to buy. Minneapolis posted the limit up move on delayed spring wheat planting. It has been dry in France where an analyst has now cut the outlook for that wheat crop by 11.5 percent from last year.

Virginia McGathey of McGathey Commodities at the CME has this to say about Chicago futures.

McGathey: “The market really looks strong. The targets are somewhere between the $8.50 and $9 mark for the wheat. We could see a continuing market moving higher.”

On Wednesday Chicago July wheat up 53 cents at 8-17. July corn up 29 ½ cents at 7-49 ¾. Portland soft white wheat 25 to 35 cents higher at mostly $8. Club at Portland also mostly $8. New crop August white wheat five to 20 cents higher at 7-60 to $8. Hard red winter 11.5 percent protein up 43 cents at 9-81. DNS 14% protein sixty cents higher at 12-46.

Cattle futures were mixed Wednesday. Poor weather impacting grilling and beef demand and some lower cash fed cattle prices this week had nearby live cattle lower while higher corn had back months higher. Higher priced grain was negative for feeder contracts. June live cattle down 150 at 106-25. August feeders down 192 at 128. June Class III milk up 18 cents at 17-42 ahead of the USDA reporting April milk production in the major producing states was up 1.7 percent over last April.

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

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