Wheat Market Rallies on Global Supply Stresses

Wheat Market Rallies on Global Supply Stresses

I'm KayDee Gilkey with the Market Line Report for July 26, 2012.?
September Chicago wheat traded sharply higher into the close after reports that more agricultural regions in Russia have declared emergencies due to the recent drought. From the floor of the CME Group, Virginia McGathey shares her observations of Wednesday’s markets.

McGathey: “We really had really big ranges in all the grains today. The beans had about 75 cent-range. Corn had a 25 to 30 cents and wheat at one point was down 20 cents and then closed up 25 cents, so we’ve really got a lot of volatility. The other thing that happen in wheat, is a report came out from the Black Sea region that really let us know that in their harvesting of their winter wheat the yield is down close to 25 percent. That was really a shock and surprise, so now we are going to start looking and worrying about world wheat supplies.”

Chicago September Wheat ended Wednesday up 24 and 1/2 cents at 9-03 and 1/4. September corn ended the day up 4 and 1/2 cents at 7-94 and 1/2.

Portland prices for soft white wheat and club wheat were up 25 to 40 cents at mostly 8-80. Hard Red Winter Wheat with 11.5 pct protein prices were up 23 to 33 cents at mostly 9-54. DNS wheat with 14 pct protein prices were up 20 cents at mostly 10-52.

August live cattle ended Wednesday down 85 cents at 117-95. August Feeder cattle were limit down $3 at 134-68. August class III milk was down 3 cents at 17-68.

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