Dollar up but wheat futures higher too

Market Line Nov. 16 , 2011 Wheat futures saw some double digit gains Tuesday. There was pressure from a higher U.S. dollar but higher crude oil and other strong ag commodities were said to support wheat with short covering also a factor.

Some good rains are in the forecast for the U.S. southern plains. Australia is getting rain and harvest is underway there so once again there is concern about crop quality. Allen Motew of QT Weather for the Linn Group at the CME says it looks to stay dry a while longer in Ukraine.

Motew: “The Ukraine may continue to be dry for another ten to 12 days at least. We are looking at the possibility after that time for a little change in the pattern but there are no signs of that to be of significance.”

On Tuesday Chicago December wheat up 17 cents at 6-32 ¾. December corn up 12 cents at 6-45 ½. Portland soft white wheat and club wheat up a nickel to down two cents at mostly 6-07. Hard red winter 11.5 percent protein eight to 13 cents higher at 7-67. DNS 14% protein up seven cents at 10-19.

Cattle futures put in a strong performance Tuesday with some triple digit gains for both live and feeder contracts. Factors cited are strong export beef demand, rising wholesale beef prices and short covering. Cash fed cattle have yet to trade this week but supplies are seen as tight. December live cattle up 162 at 121-72. January feeders up 257 at 148-37. December Class III milk up 22 cents at 19-54 as cheese prices continued to climb.

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

Now this.