Several factors help wheat; USDA report helps cattle

Market Line September 27, 2011 Wheat futures closed higher Monday. Traders see the market as extremely oversold with funds net short. Out side markets were also called supportive and Jack Scoville of Price Futures Group at the CME says the situation in the southern plains continues to help.

Scoville: “Those areas did get a little bit of rain over the last week or so but just enough really to dampen the ground and settle the dust and nothing really to support planting progress of any kind.”

Weekly export inspections for wheat came in at the lower end of trade expectations, 21.6 million bushels, but that was more than needed on a weekly basis to meet USDA export projections.

On Monday Chicago December wheat up 7 ½ cents at 6-48 ¼. December corn up 9 ½ cents at 6-48. Portland soft white wheat and club wheat for October up a nickel at 6-35 to 6-45. Hard red winter 11.5 percent protein for September up 13 cents at 7-89. DNS 14% protein for September up 19 cents at mostly 9-80.

Cattle futures saw some limit up gains Monday. Traders reacted bullishly to Friday’s Cattle on Feed report which showed much smaller placements than the trade had expected. The beef market was strong Monday and the higher stock market was an additional plus. December live cattle up $3 at 119-72. November feeders up $3 at 139-57. November Class III milk down 41 cents at 17-36 in a general sell off of dairy futures.

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

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