Outside forces help grains

Market Line Oct. 11, 2011 Wheat futures gave up some of their early strong gains Monday but still closed a few cents higher. Good weekend rains in the southern plains that are good for winter wheat planting were said to limit gains.

Mario Baletto of Citi Group at the CME says outside markets also played a role in grain futures.

Baletto: “Basically the weaker dollar-higher crude oil based on optimism on some solution coming to European financial woes and the prices had been oversold as well so vulnerable to some technical correction also.”

Yesterday was a holiday for USDA so weekly export inspections and crop progress will be out this afternoon and tomorrow morning the monthly supply and demand and crop production reports.

On Monday Chicago December wheat up four cents at 6-11 ½. December corn up a nickel at 6-05. Portland soft white wheat and club wheat up a nickel to down a nickel at mostly 6-28. Hard red winter 11.5 percent protein a penny to nine cents higher at 7-49. DNS 14% protein up seven cents at 10-07.

Cattle futures were mixed Monday. Higher boxed beef, higher stocks and a lower dollar were all cited as supportive. There was talk the market was overbought technically. December live cattle down 150 at 120-35. November feeders up 77 at 143-12. November Class III milk down 68 cents at 17-19 on a drop in barrel cheese prices.

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

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