Strong Prices in Wheat Market

Strong Prices in Wheat Market

I'm KayDee Gilkey with the Market Line Report for May 18, 2012.

Wheat found support from good weekly export sales and concerns of dry weather in the U.S. and overseas. July wheat closed sharply higher on the day Thursday and is up now as much as 66 1/4 cents from Monday lows.?
Steve Georgy from Allendale Brokers shares his observations of Thursday’s market.

Georgy: “So as you guys remember yesterday, wheat led the way. They are leading the way again today. There are a lot of stories out there. Concerned about Russia wheat and there are some weather forecasters talking about how dry that is. Funds are also coming out of short positions. As of this morning funds were short almost 40,000 contracts. So we’ve got them coming out of short positions which is supporting the market and continuing to push the wheat higher. If wheat continues to go up, corn is going to try and go up with it.”

Chicago July Wheat ended Thursday up 19 cents at 6-57 and 3/4. July corn was up a nickel at 6-25.

Portland prices for soft white wheat and club wheat were up a nickel to a dime at mostly 6-90. Hard Red Winter Wheat with 11.5 pct protein prices were up 16 cents at mostly 7-72. DNS wheat with 14 pct protein prices were up 7 cents at mostly 9-16.

June live cattle ended up $1.05 at 117-93. August Feeder cattle were up $1.60 at 159-93. June class III milk was up 12 cents at 15-37.

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