Wheat futures higher while cattle rally continues

Market Line June 22, 2011 Analysts said talk of an oversold market and more wheat feeding globally this year helped wheat futures move higher Tuesday. A break in the dollar was also positive. Wheat also benefited from spillover from new crop corn and Joe Vaclavik with MF Global at the CME says corn is where the focus will be in July.

Vaclavik: “As we enter July and see corn pollination after a couple of weeks we are very quickly going to come into a market that is going to be trading weather more than anything.”

Canadian farmers only advanced their spring wheat planting by one percent last week. The Canadian Wheat Board says 13 percent of the crop remains to be seeded but the insurance deadline passed Monday.

On Tuesday Chicago July wheat up 15 cents at 6-74 ¼. July corn up seven cents at 7-07 ½. Portland soft white and club wheat two to five cents lower at mostly 7-37. New crop August white wheat steady to a nickel lower at 7-35 to 7-45. Hard red winter 11.5 percent protein mixed at mostly 8-58. DNS 14% protein four to nine cents lower at 11-43.

Cattle futures continued their move higher this week still benefiting from the bullish cattle on feed report. Feedlots are asking three to six dollars more this week than last, but no bids reported. A higher stock market was positive. August live cattle up 117 at 113-15. August feeders up 232 at 137-82. Class III milk up a penny at 20-07.

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

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