Wheat Rallies Despite Fundamentals
Another positive day for both wheat and cattle markets on Wednesday. Corn and milk struggled to follow suit. From her quarantined home trading office in Chicago, here’s Virginia McGathey.
McGathey… “Wheat did surge today. That was really the big leader. Six straight days of up. This market has really rallied off its bottom in a way that we were kind of surprised to see. That momentum from difficulties in Russia and the Ukraine. That added to the friendly aspect of the fact that China is really starting to buy and honor their phase one trade deal. I think that the futures were completely ignoring the fact that U S wheat prices are higher then most everyone globally, and so you would think that we've been priced out of the market, but here we are with the momentum behind these markets. And you know, who knows? $6 looks pretty close right now, and could we see $6 wheat? It's very possible.”
Chicago May Wheat futures yesterday closed up $0.18 ½ to $5.80.
Kansas City Hard Red Winter Wheat up $0.10 ¼ to $5.01.
May Corn closed up a penny and a quarter to $3.48 ½.
Portland prices for soft white wheat of ordinary protein up a nickel ranging from $6.05 to $6.10.
Club Wheat of Ordinary Protein up $0.10 ranging from $6.10 to $7.80.
Dark Northern Spring wheat prices up $0.02 ½ ranging from $6.72 ½ to $7.07 ½ for 14% protein.
Live Cattle futures up again $2.30 this time on the April board to $108.45. Feeder Cattle up $1.85 to $132.07 ½.
Class III milk fell $0.14 to $15.94.