07/20/06 Wheat futures lower; cattle rally

Marketline July 20, 2006 Weakness in other grains helped trigger long liquidation in wheat Wednesday and futures closed lower at all exchanges. There were some showers in the northern Plains but weather forecasts still call for warmer than normal and drier than normal for the spring wheat belt. Marc Chiodo of Slipka Commodities at the Minneapolis Grain Exchange assesses where we go from here. Chiodo: "I think the speculative crowd is more willing to take on the market on a down trip here. I really do think in the short term out lows are in on the corn and wheat. That is just my opinion but that is what it looks like from here." Overseas in London and Paris wheat contracts pushed to new highs yesterday as the weather is hot and dry in France. Dry weather in Argentina has officials there scaling back estimates of wheat plantings. And Pakistan has cancelled plans to allow exports of wheat for at least a year. On Wednesday September Chicago wheat was down a nickel at 3-93. September corn down 1 ¾ at 2-44 ¾. Portland cash white wheat steady to two cents higher at mostly 3-83. Club wheat 3-86. HRW 11.5 percent protein down three cents at 5-24. Dark northern spring 14% protein two to four lower at 5-79. No Portland barley bids. Cattle futures were sharply higher Wednesday with no particular news to point to except lower corn helping feeders. Shorts had to cover their positions. Tomorrow after the close is the Cattle on Feed report. Aug live cattle up 1-70 at 84-40. Aug feeders up 2-17 at 115-72. Aug Class III milk down a nickel at 11-25. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.