Strong Wheat Markets

Strong Wheat Market

I'm KayDee Gilkey with the Market Line Report for July 13, 2012.

The continued surge in corn prices on fears of broadening pollination problems in Iowa next week helped to support active buying in the wheat market. From the floor of the CME Group, Jerrod Kitt shares his observations of Thursday’s markets.

Kitt: “It was another quite exciting day over in the grain complex with corn up more than 25 cents, while wheat was also 20 cents higher. Really the story here is that we are dealing with the aftermath of the report yesterday. You have a very big reversal lower, the technicians call it a key-reversal lower that is usually a very important technical signal to watch out for the downside. However, it is important to realize that this really is not a technically driven market, this is a supply-fear market. On those type of things, the prices tend to move a lot higher than you expect.”

Chicago September Wheat ended Thursday up 20 and 1/2 cents at 8-46 and 3/4. September corn ended the day up 27 and 1/4 cents at 7-31 and a 1/4.
Portland prices for soft white wheat and club wheat were up 20 to 30 cents at 8-45. Hard Red Winter Wheat with 11.5 pct protein prices were up 11 to 16 cents at mostly 8-92. DNS wheat with 14 pct protein prices were up 7 to 17 cents at mostly 10-25.

August live cattle ended Thursday down 98 cents at 117-03. August Feeder cattle were down $3 at 141-23. August class III milk was up 49 cents at 18-03.

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