Continued Drought Keeps Grain Markets Moving Higher

 Continued Drought Keeps Grain Markets Moving Higher

I'm KayDee Gilkey with the Market Line Report for July 31 2012.?
Chicago wheat futures paced gains in the wheat market thanks to strength in the corn market. Traders are also concerned with crop prospects in the Former Soviet Union due to drought in key production countries. From the floor of the CME Group, Virginia McGathey shares her observations of Monday’s markets.

McGathey: “Wheat on the other hand is having difficulty in Russia and Australia so if we start to tightening the supplies on the world wheat product, we could really be in trouble. I think that it is beginning to set in with everyone and that is why the market is still really strong. The market was relatively quiet but really strong in the pricing model and we expect that to continue until we got more information.”

Chicago September Wheat ended Monday up 16 and 1/2 cents at 9-14 and 1/2. September corn ended the day up 21 and 1/2 cents at 8-20.

Portland prices for soft white wheat and club wheat were up 15 to 17 cents at mostly 8-95. Hard Red Winter Wheat with 11.5 pct protein prices were up 11 cents at mostly 9-61. DNS wheat with 14 pct protein prices were all over the board at down 11 to up 17 cents at mostly 10-27.

August live cattle ended Monday up a nickel at 119-65. August Feeder cattle were up 50 cents at 138-25. August class III milk was unchanged at 17-30.

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