08/09/06 Technical selling in wheat futures

Marketline August 9, 2006 Wheat futures were sharply lower Tuesday. There was some bearish news that Iraq was talking with Australia about resuming imports from them, but Joe Victor of Allendale Incorporated, says Tuesday's selling which was led by Kansas City was due to technical factors. Victor: "September contract Kansas City down 14 ¾ cents. Settled today at $4.69 ¾ and the big problem was that it did break the 100-day moving average." In the background there is still concern about dryness in the Plains and planting conditions for this fall's winter wheat crop. Some commentary also noted spillover pressure Tuesday from corn and soybeans based on weather forecasts and USDA's weekly crop ratings. On Tuesday September Chicago wheat was down nine cents at 3-84. September corn down four at 2-35 ¾. Portland cash white wheat unchanged to two cents lower but mostly 3-97. Club wheat 4-22. HRW 11.5 percent protein as much at 15 cents lower at mostly 5-10. Dark northern spring 14% protein eight to ten cents lower at 5-53. No Portland barley bids. Cattle futures were narrowly mixed Tuesday in a quiet sideways trade. Technical buying provided support while profit taking and concerns futures are getting out of line with the cash market contributed to selling interest. Oct live cattle up three cents at 89-93. Oct feeders up 18 at 116-55. Sept Class III milk up two cents at 11-88. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.