Wheat Rallies on Russia Production Cut
The wheat market rallied on Wednesday with news of Russia decreasing its production outlook. Other markets struggled, worrying about demand in the midst of increased tensions with China. Here’s Virginia McGathey with more on the wheat rally.
McGathey… “The big story was wheat. That really jumped up with Russia cutting its crop output, I think . Really gave the market a shot in the arm. And of course we know that a lot of the managed funds are short the wheat markets. And so when they start to scramble to cover their shorts, they start pushing the market up by themselves. And at some point they were up almost 18 cents, which is a big move that we haven't seen in wheat for quite awhile. We'll need some fundamental support to keep this market going. But for today was really, really strong all day.”
In closing markets:
Chicago July Wheat futures yesterday closed up $0.21 ¼ to $5.16 ½.
Kansas City Hard Red Winter Wheat up $0.16 to $4.56 ½.
July Corn closed up $0.02 ½ to $3.66 ¼.
Portland prices for Dark Northern Spring wheat rallied $0.09 ¼ ranging from $6.18 ¼ to $6.38 ¼ for 14% protein.
Live Cattle futures fell $0.85 on the August board to $99.15. Feeder Cattle for August down $0.87 ½ to $134.05.
Class III milk for August up another $0.03 to $21.53.