Upside Day of Trade in Wheat Market

I’m KayDee Gilkey with the Market Line Report for Jan 15, 2013.

??KC and Chicago wheat traded sharply higher on the day, Monday following last Friday's bullish USDA report that showed a tightening ending stocks outlook for the US all wheat balance sheet and less planted acreage than many traders expected. From the floor of the CME Group, Frank Lesh shares his observations of Monday’s markets.

Lesh: “We have higher markets across the board in here today. We’ve got the report from Friday, we’ll probably be dealing with that for the next several days. Looking forward it is all about production numbers. We’ll have to watch weather out there for the wheat crop. We do need some snow cover out there, it is pretty barren susceptible to winter kill. That is the same situation in Russia they are looking at about a 20 percent loss in output due to the winter kill situation.”

Chicago March Wheat ended Monday up 12 and 1/4 cents at 7-67. March corn ended the day up 15 and 1/4 cents at 7-24.

Portland prices for soft white wheat and club wheat were up 17 to 18 cents at mostly 8-52 and 1/4. Hard Red Winter Wheat with 11.5 pct protein prices were up 16 and 1/2 cents at mostly 9-18 and 1/2. DNS wheat with 14 pct protein prices were up 7 and 1/2 cents at mostly 9-40 and 3/4.

February live cattle were down Monday 25 cents at 130-35. March Feeder cattle were down 2 and 1/2 cents at 151-42 and 1/2. February class III milk was down 3 cents at 17-58.