Wheat Rally Continues on Wednesday

I’m KayDee Gilkey with the Market Line Report for March 13, 2014.

 

The strong rally in the wheat markets continued on Wednesday. From the floor of the CME Group, Todd Horwitz shares his observations of Wednesday’s markets.

 

Horwitz: “I think that the real interesting story here is the way wheat has been reacting — once it came down to those lows in those lows in the mid-fives we’ve seen nothing but a straight up rally which is showing us A) In the front month here we are seeing some shortages so we’re getting a little bit of a short squeeze but if you go back into the December wheat you also will see higher prices. So it looks like for the year — it looks like wheat is going to have a pretty good move here. I would watch the $7 level as a potential spot to either take a profit or take a stab from the short side.”

 

Chicago May Wheat ended Wednesday up 24 and 3/4 cents at 6-83 and 3/4. May corn ended the day up 5 and 1/4 cents at 4-88 and 1/2.

 

Portland prices for soft white wheat were up 5 to 19 and 3/4 cents at mostly 7-49 and 1/2. White club wheat prices were up 5 to 19 and 3/4 cents at mostly 8-04 and 1/2. Hard Red Winter wheat with 11.5 percent protein prices were up 14 and 1/4 to 19 and 1/4 cents at mostly 8-84 and 3/4. DNS wheat with 14 percent protein prices were up 23 and and 3/4 cents at 8-98 and 3/4.

 

April live cattle were up 65 and half cents Wednesday at 143-87 and half. April Feeder cattle were up 30 cents at 175-87 and half. April class III milk was up 7 cents at 21-46.