Grains Coming Off Rally

This is Matt Rice with the Market Line Report for May 12th. Wheat sitting on a solid foundation as prices drift lower after yesterday's rally. Soy beans and corn feeling the ripple effect, as prices weaken in the grains. Let's go to Todd Horwitz as he explains in more detail from the floor of the CME in Chicago.

Horwitz "Wednesday's grains we saw a little bit of retracement off yesterday's rally. Let's take a look at yesterday's bigger rally, I think this is something to take note of. Wheat remains down at the lower end of this level, and again I think this is probably a good buy down here in the 4-60 area. So that remains pretty much the same, hasn't done much, tried to break out 2 weeks ago got to 5-10, now we're back at 4-60."

Chicago May Wheat prices were dn 2, at 452. May corn ended the day 4 ½, at 373. Portland prices for soft white wheat of 10 ½ % protein for May had a mixed market, dn 5 ½ and up 2 ¾, ranging from 5-34 to 5-74 ¼. Hard Red Winter wheat with 11 ½ % protein, prices for May were dn 6-1, ranging from 5-17 ¼ to 5-32 ¼. DNS wheat with 14 % protein, prices for May were dropping big, dn 21 ½ - 6 ½, ranging from 6-07 ¼ to 6-27 ¼. June Live Cattle closed the day dn 45 cents, at 122.52 ½. May Feeder cattle were dn $1.20, at 148.25. May class III milk was up 5 cents at, 12-79.