Short covering in wheat futures

Market Line December 22, 2011 Wheat futures were mostly higher on Wednesday. Commentary pointed to more spillover support from corn on the dry South America weather. As the market went up short covering was triggered. Traders are also positioning for the end of the year.

Adequate world wheat supplies continue to overhang the market.

This morning is the weekly export sales report from USDA.

Friday the markets will close early for Christmas and they will be closed on Monday with trading resuming next Tuesday.

On Wednesday Chicago March wheat up 9 ¼ cents at 6-17. March corn up 9 ½ cents at 6-16 ½. Portland soft white wheat and club wheat steady to three cents higher at mostly 5-93. Hard red winter 11.5 percent protein up three cents at 7-25. DNS 14% protein mixed at mostly 9-75.

Cattle futures were mixed on Wednesday. There was uncertainty about the cash fed market with little trading having taken place. This week’s winter storm in the plains was less severe on cattle than trader’s had anticipated. Economic conditions and the high price of beef with its potential impact on consumer beef demand is also cited as a concern of traders. February live cattle down 20 cents at 120-45. January feeders up a nickel at 144-37. January Class III milk down two cents at 17-22.

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

Now this.