Wheat Market a Bit Higher

 I’m KayDee Gilkey with the Market Line Report for Jan 17, 2013.

KC and Chicago wheat traded lower early in the session but managed to close higher on the day Wednesday.The tight corn supply this year suggests better feed wheat demand which may pick up some of the slack from missed export opportunities. From the floor of the CME Group, Charles Nedoss shares his observations of Wednesday’s markets.

Nedoss: “We’ve really seen a pretty big short-covering rally post-USDA report. That has really been the main feature of the grain markets for the past couple of sessions. Cattle trading lower today as demand started to wan. Retailers hold back on purchases, typically after the holiday season you do start to see beef demand wan. Feb cattle did hit a six week low, and are really testing the lows of last fall.”
Chicago March Wheat ended Wednesday up 2 and 1/4 cents at 7-85. March corn ended the day up 3/4 of a cent  at 7-31 and 1/4.

Portland prices for soft white wheat and club wheat were steady to up 5 cents at mostly 8-65. Hard Red Winter Wheat with 11.5 pct protein prices were up 4 and 1/4 cents at mostly 9-40 and 1/2. DNS wheat with 14 pct protein prices were up 5 and 1/4 cents at mostly 9-60 and 1/2.

February live cattle were down Wednesday $1.90 at 128-52 and 1/2. March Feeder cattle were down $2.15 at 148-22 and 1/2. February class III milk was down 16 cents at 17-49.