06/07/06 Sharp drop for wheat futures

Marketline June 7, 2006 There were some double digit losses in wheat futures Tuesday. Christopher Modoff of R. J. O'Brian at the Chicago Board of trade says funds were liquidating in all the grains. Modoff: "Certainly the weather models getting cooler and wetter had something to do with it. The outside markets under pressure. It just seemed like we had some liquidation going around as we have had excessive fund length in corn, wheat and oil. Corn and wheat were the ones that liquidated the most followed b the beans as the funds had to get out of some of the shorts they had on, but now look to be putting that back on as we continue to see pressure all the way across." Traders at Chicago again expressed concern there could be a disorderly liquidation in Chicago wheat given the recent rally despite ample soft red supplies. Talk of better than expected hard red winter wheat yields also weighed on futures. On Tuesday July Chicago wheat was down 13 ½ cents at 3-85. July corn down 5 ¼ at 2-47 ¾. Portland cash white wheat was steady to a nickel lower at mostly 3-83. First half August lower at 3-91. Club wheat 3-83. HRW 11.5 percent protein 16-18 cents lower at 5-38. Dark northern spring 14% protein 12-14 cents lower at 5-61. No Portland barley bids. Live cattle futures were mixed Tuesday with feeders higher benefiting from lower feed grains. Higher boxed beef values and thoughts of a firm cash market this week provided support. Aug live cattle down a dime at 80-58. Aug feeders up 27 at 109-85. July Class III milk down 16 cents at 11-75. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.