Grain Markets Higher on Weather Concerns

Grain Markets Higher on Weather Concerns

I'm KayDee Gilkey with the Market Line Report for June 7, 2012.

Wheat may return to being a follower in the near term as U.S. harvest pressure offsets a warming trend in Russia. From the floor of the CME Group, Jerrod Kitt with The Linn Group shares his observations of Wednesday’s markets.

Kitt: “In wheat really what you are really facing is harvest pressure. The harvest is rapidly expanding south up into the north of Kansas. So you continually have that self-pressure on wheat which is holding that down. At the same time, demand is fairly weak now that you are trading it above corn so you essentially got booted out of livestock rations so now they have to work their way back in just to reach a reasonable level of demand.”

Chicago July Wheat ended Wednesday up 11 cents at 6-24 and 1/4. July corn ended the day up 18 and 3/4 cents at 5-86 and 1/4.

Portland prices for soft white wheat and club wheat were steady to up a dime at mostly 6-68. Hard Red Winter Wheat with 11.5 pct protein prices were up 17 cents at mostly 7-35. DNS wheat with 14 pct protein prices were up 15 cents at mostly 8-86.

August live cattle ended up a dime at 119-30. August Feeder cattle were down $1.23 at 157-95. July class III milk was down 9 cents at 16-11.

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