Sharply Higher Wheat Futures

Sharply Higher Wheat Futures

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

Spillover support from corn pushed wheat to new highs and outside markets provided a positive tilt with the US Dollar trading slightly lower on the day Monday.

From the floor of the CME Group, Joe Vaclavik shares his observations of Monday’s markets.

Vaclavik: “New highs across the board in the corn, wheat and soybean markets. The trade really beginning to realize that a lot of permanent damage has been done the corn crop here in the United States. Moving forward here, a couple things are pretty important, first off I think the trade knows that the corn crop is no good. I think the market is in the process of pricing in a much lower yield possibly somewhere in the mid to low 130s in my opinion. I think the bigger question here is demand. Who is going to be able to afford to buy $7.50 to $8 corn.”

Chicago September Wheat ended Monday up 36 and 3/4 cents at 8-84 and 1/2. September corn ended the day up 36 and 1/4 cents at 7-76 and 3/4.
Portland prices for soft white wheat and club wheat were up 25 cents at mostly 8-71. Hard Red Winter Wheat with 11.5 pct protein prices were up 34 cents at mostly 9-32. DNS wheat with 14 pct protein prices were up 33 to 39 cents at mostly 10-70.

August live cattle ended Monday down 40 cents at 116-80. August Feeder cattle were down $2.23 at 139 even. August class III milk was down 3 cents at 18-19.

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