Wheat futures up again and cattle turn down

Market Line December 21, 2011 Wheat futures saw a second day of good gains this week on Tuesday. There was a sharp break in the U.S. dollar and talk of a near record net short position from speculators in Chicago were cited as supportive.

Kevin Craney with RJO Futures at the CME says there was also follow through buying on that South American weather.

Craney: “A little bit of short of covering in most of these grains as we go into the end of the week. Be looking for any changes in the weather patterns for South America that might negate the follow through that we see in the grain complex right now.”

There has been snowfall in the U.S. southern plains which aids the moisture situation there for hard red winter wheat.

On Tuesday Chicago March wheat up eight cents at 6-07 ¾. March corn up six cents at 6-07. Portland soft white wheat and club wheat a nickel to seven cents higher at mostly 5-95. Hard red winter 11.5 percent protein nine cents higher at 7-21. DNS 14% protein up 12 cents at 9-74.

Profit taking after Monday’s big gains got some of the blame for lower cattle futures Tuesday. Traders concerns about the winter storm’s impact on plains feedlot operations also eased. Outside markets were positive and boxed beef was higher. February live cattle down 85 cents at 120-65. January feeders down 35 cents at 144-32. January Class III milk down six cents at 17-24.

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