08/16/06 Wheat bounces; cattle futures lower

Marketline August 16, 2006 Wheat futures posted modest gains Tuesday amid ideas the market was oversold. USDA reported Monday that 69 percent of the U.S. spring crop had been harvested, 35 percent ahead of the usual pace and that should ease seasonal pressure. As for the winter wheat harvest in the PNW, Oregon had cut 80 percent of its crop to start this week, Washington 78 percent and Idaho 69 percent. The spring wheat harvest was 54 percent complete in Washington, 58 percent done in Oregon and 25 percent complete in Idaho. Ryan Kelbrantz of ADM at the Minneapolis Grain Exchange explains what he expects from futures. Kelbrantz: "We do have some support at these levels. I expect light country selling should limit the upside and fund activity will remain the catalyst for price discovery. In the short term I think we are going to see some consolidation at current price levels." On Tuesday September Chicago wheat was up 2 ¾ cents at 3-76 ¾. September corn unchanged at 2-22. Portland cash white wheat steady to two cents higher at mostly 3-97 on limited bids. Club wheat 4-27. HRW 11.5 percent protein 11-13 cents higher at 5-08. Dark northern spring 14% protein two to four higher at 5-38. No Portland barley bids. Cattle futures were lower Tuesday in a slow trade which featured contract spreading. The trade awaits Friday's Cattle on Feed report with expectations that July placements could be up 20 percent over last year. Oct live cattle down a dime at 91-70. Oct feeders down 25 at 116-63. Sept Class III milk up a nickel at 11-90. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.