Wheat Market Early Gains Didn't Hold

Wheat Market Early Gains Didn’t Hold

I'm KayDee Gilkey with the Market Line Report for March 14, 2012.?

The market could not hold onto the day’s early gains on Tuesday as improving crop conditions and ideas that the weather outlook for the next two weeks may mean that winter wheat crops will continue to improve helped to pressure the market. This helped to spark the selling and lower trade on the day into the mid-session.

From the floor of the CME, Frank Lesh with Future Path Trading shares his observation’s of Tuesday’s markets.

Lesh: “Wheat continues to benefit here from improving precipitation prospects and soil conditions. It is going to help that winter wheat crop that we are going to harvest and that spring crop that is going in. Right now for wheat world supply is certainly adequate. Short covering and the corn prices main drivers for the wheat price working higher in here.”

Chicago May Wheat ended Tuesday down 2 and 1/4 cents at 6-49. July new crop was down 1 and 1/4 cents at 6-58. May corn was up 2 and 1/2 cents at 6-62.

Portland prices for soft white wheat and club wheat were unchanged at mostly 7-10. Hard Red Winter Wheat with 11.5 pct protein was down 8 cents at mostly 7-76. DNS wheat with 14 pct protein was down 9 cents at mostly 9-54.

April live cattle were up 98 cents at 127-73. April Feeder cattle were up $1.43 at 157-78. April class III milk was up 2 cents at 15-48.

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