Wheat Correction Continues
Wheat market continues its correction, not helped by fears over the potential impact of the coronavirus. Here’s Standard Grain’s Joe Vaclavik from the “Grain Markets and Other Stuff” Podcast.
Vaclavik…”I think that jitters regarding the coronavirus have impacted the market again here today. We now have 7,700 cases confirmed. The death toll has hit at least 170, and again, a lot of people believe that those numbers are light. So the amount of cases is nearly tripled versus the numbers reported earlier this week. Wheat market now in full blown correction mode, I would say after an extended bull run. These sort of markets, whether it be the big run up we saw on cattle, which is now in correction mode or wheat, which I think is also not correction mode. When you get those big, those big bull runs with very little correction, you know the correction is inevitable. Picking the level and the timing of course is what is, is very, very difficult.”
Chicago March Wheat futures yesterday closed down a penny and a half to $5.60 ½.
Kansas City Hard Red Winter Wheat down a penny to $4.71.
March Corn closed down $0.04 ½ to $3.79 ½.
Portland prices for soft white wheat of ordinary protein down yesterday ranging now from $6.20 to $6.30.
Club Wheat of Ordinary Protein also weaker ranging from $6.20 to $8.05.
Dark Northern Spring wheat prices up just three quarters of a cent ranging from $6.71 ½ to $7.06 ½ for 14% protein.
Live Cattle futures were up just $.02 ½ on the February board to $121.77 ½. March Feeder Cattle up $0.67 ½ to $135.65.
Class III milk in negative territory yesterday, down $0.30 to $17.34.