Rally Causes Soft White Producers to Sell and Brings Lower Portland Prices

I’m KayDee Gilkey with the Market Line Report for December 4, 2014.
The recent rallies in the grain market caused many soft white wheat producers to sell bringing lower prices regionally on Wednesday. From the floor of the CME Group, Todd Horwitz shares his observations of Wednesday’s markets.
Horwitz: “Wednesday’s grain we saw lower prices across the board. Wheat still remains much stronger than the rest of the complex and soybeans remain the weakest. Wheat is just in a market of its own right now. As it has been the weakest over the last couple of years, it is now has become the strongest. Once we made that break out over $5.20, then through $5.70 we ran well over $6. I look for $5.70 as a level to step in here. Again, there are all sorts of stories and rumors — bottom line is that technically the charts look great and $5.70 looks like a good level to step in and buy.”
Chicago March Wheat ended Wednesday down 13 and 3/4 cents at 5-89 and 1/2. March corn ended the day up 3/4 of a cent at 3-82.
Portland Wednesday’s prices for soft white wheat were down 13 and 3/4 to 38 and 3/4 cents at mostly 7-13 and 1/2. White club wheat prices were down 13 and 3/4 to 18 and 3/4 cents at mostly 9-59 and 3/4. Hard Red Winter wheat with 11.5 percent protein prices were down 12 and 1/2 cents at mostly 7-62 and 3/4. DNS wheat with 14 percent protein prices were down 11 and 1/4 cents at mostly 9-71 and 1/4.
February live cattle were down $1.92 and half on Wednesday at 167-12 and half. March Feeder cattle were down $1.57 and half at 231-90. January class III milk was unchanged at 16-60.