Wheat Market Supported From Tightening Supplies

Wheat Market Supported from Tightening Supplies

I’m KayDee Gilkey with the Market Line Report for Oct. 23, 2012. ?
Wheat was supported by spillover from the soybean market on Monday, as well as tightening supplies in the Black Sea region. As reported last week, starting Nov. 15, Ukraine will stop exporting wheat and traders suspect Russia's exportable supplies will soon dry up as well.From the floor of the CME Group, Dan Smith shares his observations of Monday’s markets.

Smith: “Looking at today’s grain trade, we saw a pretty positive trade throughout the board. Reasons being continued demand from China overnight. The EMU accepting now South American corn, GMO corn into Europe. One of the things we gonna be watching is the wheat market. Stories out of Russia that they have overcommitted to sales and may not be able to fulfill some contracts. Also a shrinking crop in Australia could add for higher prices there.”

Chicago December Wheat ended Monday up 6 and 3/4 cents at 8-78 and 1/4. December corn ended the day down 1/4 of a cent at 7-61 and 1/4.

Portland prices for soft white wheat and club wheat were up 5 and 3/4 ranging between 8-93 and 1/4 and 9-03 and 1/4. Hard Red Winter Wheat with 11.5 pct protein prices were up 7 and 1/2 cents at mostly 9-88 and 1/2. DNS wheat with 14 pct protein prices were up a nickel at mostly 10-25 and 1/2.

October live cattle were up Monday a dime at 126-40. October Feeder cattle were down 48 cents at 145-68. October class III milk was up a penny at 21-05.

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