Wheat Benefits from Russia and Trade Deal
As you may have guessed, the trade deal with China was all most people were talking about on Wednesday. From the floor of the CME in Chicago, here’s Virginia McGathey.
McGathey…”That trade deal finally signed, has helped the wheat almost more than anyone. A little bit unsuspecting that the market has rallied over $1.50 in the past number of months, which has been kind of interesting. Very unexpected even for most of the traders here. But the market's been strong for all three exchanges from Kansas city and Minneapolis, along with Chicago. So, with the idea that China's going to be buying more, I think is underpinning a lot of the support of the numbers. Also that Russia is going to just tighten some regulations there, is definitely sparking a little more buying in this wheat. It looks like the market's going to continue to go and perhaps trying to move up over $6.”
The markets’ response was mixed on Wednesday.
Chicago March Wheat futures closed up $0.04 ½ to $5.73 ¼.
Kansas City Hard Red Winter Wheat down a half cent to $4.96 ½.
March Corn closed down $0.01 ½ to $3.96 ½.
Portland prices for soft white wheat of ordinary protein were firmer yesterday . Bids up 3-10 cents ranging from $6.20 to $6.25.
Club Wheat of Ordinary Protein also up a few cents. Bids now range from $6.25 to $7.95.
Dark Northern Spring wheat prices for Dec were up a quarter of a cent yesterday ranging from $6.91 ¼ to $7.16 ¼ for 14% protein.
Live Cattle futures were down $0.25 to $126.60 on the February board. March Feeder Cattle were down $0.55 to $145.17 ½.
Class III milk rallied $0.23 at $17.08.