Grains Rally Sharply Again Thursday

Grains Rally Sharply Again Thursday

I'm KayDee Gilkey with the Market Line Report for June 8, 2012.

A lack of rain in the forecast, supportive outside markets, and bullish fundamentals supported the grain complex to differing degrees Thursday with sharp gains mostly the result. From the floor of the CME Group, Frank Lesh with Future Path Trading shares his observations of Thursday’s markets.

Lesh: “Wheat gives back the whole May rally of course we’re down from 7-20 down to about 6-10 over a dollar move in several weeks. Once I mention wheat, I should say the Black Sea Wheat Futures started trading debuted here yesterday. Black Sea accounts for about 20 percent of world exports, so we think this is going to be a viable contract and a good spread potential there.”

Chicago July Wheat ended Thursday up 17 and 1/2 cents at 6-41 and 3/4. July corn ended the day up 7 and 3/4 cents at 5-94.

Portland prices for soft white wheat and club wheat were up 10 to 15 cents at mostly 6-80. Hard Red Winter Wheat with 11.5 pct protein prices were up 14 cents at mostly 7-49. DNS wheat with 14 pct protein prices were up 23 cents at mostly 9-09.

August live cattle ended up $1.13 at 120-43. August Feeder cattle were up $1.15 at 159-10. July class III milk was up 27 cents at 16-38.

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