Wheat Market Sharply Higher

I’m KayDee Gilkey with the Market Line Report for Jan 16, 2013. ?
KC and Chicago wheat traded sharply higher on the day Tuesday. Short covering and technical buying helped to support the move higher. Wheat saw significant gains on corn as some suggested wheat's premium to corn had narrowed too much given the likely increases in feed wheat usage going forward.
Export demand remains weak despite Chicago wheat's competitive price structure in the world market. From the floor of the CME Group, Joe Vaclavik shares his observations of Tuesday’s markets.

Vaclavik: “Grain markets are mostly higher today. We have the corn market higher and we have the wheat market sharply higher. So we are still kinda of still digesting this big USDA report that we had this past Friday which was basically bullish corn and bullish wheat.”

Chicago March Wheat ended Tuesday up 15 and 3/4 cents at 7-82 and 3/4. March corn ended the day up 6 and 1/2 cents at 7-30 and 1/2.

Portland prices for soft white wheat and club wheat were up 3 to 10 cents at mostly 8-62 and 3/4. Hard Red Winter Wheat with 11.5 pct protein prices were up 14 and 3/4 cents to 24 and 3/4 cents at mostly 9-36 and 1/4. DNS wheat with 14 pct protein prices were up 13 and 1/2 to 18 and 1/2 cents at mostly 9-55 and 1/4.??

February live cattle were up Tuesday 7 and 1/2 cents at 130-42 and 1/2. March Feeder cattle were down $1.05 at 150-37 and 1/2. February class III milk was up 7 cents at 17-65.