Strong Market Prices

Strong Market Prices

I'm KayDee Gilkey with the Market Line Report for February 29, 2012.

Wheat futures began Tuesday morning slightly firmer and continued to build gains throughout the day. The futures were supported again by spillover from corn and soybean futures and the outside markets.

From the floor of the CME, Virgina McGathey of McGathey Commodities shares her observation’s of Tuesday’s markets.

McGathey: “Will it rain or won’t it? That remains to be seen and with that is which way the corn will go. And with that wheat will definitely follow. But let’s not forget that wheat around the world hedge funds are holding record short positions and so that should have some effect. I think that has a little effect on how wheat even reacts to corn. With corn up about 8 cents we found wheat ended up the day about 15 and a 1/2 cents. So we will get a little off to the races if we get into a higher price range. But it still looks like what happens in the summer time and with the weather will dictate what happens with corn.”

Chicago May Wheat ended Tuesday up 15 and 1/2 cents at 6-68 and 1/4. May corn was up 8 and 3/4 cents at 6-57 and a 1/4.

Portland prices for soft white wheat and club wheat were steady to up 12 cents at mostly 7-15. Hard Red Winter Wheat with 11.5 pct protein had no price comparison at mostly 7-90. DNS wheat with 14 pct protein had no price comparison at mostly 9-54.

April live cattle were down 20 cents at 127-35. April Feeder cattle were down 88 cents at 158-63. April class III milk was down 8 cents at 15-20.

I'm KayDee Gilkey with the Market Line Report on the Northwest Ag Information Network.