Rally Momentum Fades Wheat Lower on Tuesday

I’m KayDee Gilkey with the Market Line Report for December 3, 2014.
The rally in Monday’s wheat futures, faded on Tuesday with most wheat futures ending the day lower. From the floor of the CME Group, Joe Vaclavik shares his observations of Tuesday’s markets.
Vaclavik: “Grain markets here in Chicago were lower across the board on Tuesday. The biggest news here in the last four or five days is revolving around Russia and the potential for a floating tariff on wheat exports. They are off to a bad start in Russia in terms of production and the potential for this tariff have some people believing that we may shift some export demand toward the U.S. Now this is all hearsay at this point — there is still a long way in the growing season. I don’t necessarily know that the tariff would be beneficial to Russia in anyway in the big picture. But that is the rumor and it is into some big short-covering in the wheat market.”
Chicago March Wheat ended Tuesday down 3 and 1/2 at 6-03 and 1/4. March corn ended the day down 8 and 1/2 cents at 3-81 and 1/4.
Portland Wednesday’s prices for soft white wheat were down 23 and 1/2 to 28 and 1/2 cents at mostly 7-43 and 1/4. White club wheat prices were down 3 and 1/2 to 28 and 1/2 cents at mostly 9-85. Hard Red Winter wheat with 11.5 percent protein prices were down 7 to 22 cents at mostly 7-75 and 1/4. DNS wheat with 14 percent protein prices were down 5 and 1/4 to 15 and 1/4 cents at mostly 9-82 and 1/2.
February live cattle were down $1.80 on Tuesday at 169-05. March Feeder cattle were up 27 and half cents at 233-47 and half. January class III milk was up 39 cents at 16-60.