Southern plains weather helps wheat futures

Market Line Oct. 18, 2011 Wheat futures were higher Monday. A dry forecast for the central and southern plains of the U.S. hard red winter wheat belt was cited as a factor. Dryness in the Ukraine is also mentioned. Traders note the large short positions from speculators creating the potential for short-covering.

Iraq purchased wheat from Russia, Canada and Australia.

Joe Cusick with Options Express at the CME says the European situation is still hanging over the market.

Cusick: “Overall there continues to be uncertainty over the European debt situation that is keeping the grain traders nervous and may be the biggest factor that is going to hold back the grain complex right now.”

On Monday Chicago December wheat up 1 ½ cents at 6-24 ¼.

December corn up a half cent at 6-40 ½. Portland soft white wheat and club wheat steady to four cents higher at mostly 6-17. Hard red winter 11.5 percent protein up six cents at 7-78. DNS 14% protein also up six cents at 9-85.

Live cattle futures were mostly higher Monday with feeders mixed. That was viewed as a good performance give the down stock market. Traders are talking of higher beef prices ahead on tighter cattle supplies. There was also a report that a spokesman for the U.S. Meat Export Federation indicated Japan is considering relaxing import restrictions imposed in 2003 due to mad cow. December live cattle up 45 cents at 123-65. November feeders steady at 144-42. November Class III milk up 46 cents at 17-48.

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

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