Hot Weather Sparks Strong Wheat Market Prices

Hot Weather Sparks Strong Wheat Market Prices

I'm KayDee Gilkey with the Market Line Report for May 17, 2012.

In addition to hot and dry weather in western Kansas, talk of a hefty net short position by fund traders in wheat and ideas that demand could be strong over the near-term helped to support. ?

From the floor of the CME, Tres Knippa with Kenai Capital shares his observations of Wednesday’s market.

Knippa: “The leadership today is going to be attributed to the wheat. If you look out in Western Kansas some of the areas out there. I’ve been a pretty vocal bear on the wheat thinking that the crop out there was absolutely perfect. But let’s face it-- you’ve got 90 degree temperatures and you also have a bit of a shortage of rain in western Kansas area and that has certainly gotten this market going at least for the time being.”

Chicago July Wheat ended Wednesday up 30 and 1/4 cent at 6-38 and 3/4. July corn was up 22 and 3/4 cents at 6-20.

Portland prices for soft white wheat and club wheat were up a nickel to a dime at mostly 6-78. Hard Red Winter Wheat with 11.5 pct protein prices were up 28 cents at mostly 7-56. DNS wheat with 14 pct protein prices were up 9 cents at mostly 9-09.

June live cattle ended up 45 cents at 116-88. August Feeder cattle were up 65 cents 158-33. June class III milk was up 38 cents at 15-25.

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