08/31/06 India news sparks wheat rally

Marketline August 31, 2006 Wheat futures posted some double digit gains Wednesday. News that India is tendering for an additional 1.6 million metric tons of wheat provided fundamental support and technical buying extended gains. India is not expected to buy U.S. wheat but its imports will reduce the exportable supplies of U.S. competitors. Dry conditions in the southern hemisphere continue to offer support as well, as traders are downsizing their expectations for the Australian wheat crop. Too much rain in Europe has damaged wheat in Poland and Hungary. USDA market news says the higher Chicago futures helped cash soft white wheat at Portland as did possible new export demand, but no buyers were mentioned. USDA's weekly export sales report will be out this morning. On Wednesday December Chicago wheat was up 15 ¾ cents at 4-16 ½. December corn up six at 2-44 ¾. Portland cash soft white wheat one to four cents higher at mostly 4-03. Club wheat 4-38. HRW 11.5 percent protein 5-44. Dark northern spring 14% protein 5-57. No Portland barley bids. Cattle futures set more new highs for the third straight session Wednesday but while live cattle contracts closed higher, feeder contracts were mostly lower on higher feed grains. Optimism about that cash fed cattle will remain firm this week helped live cattle as did stabilizing boxed beef prices in the face of a heavy slaughter pace. Oct live cattle up forty cents at 92-93. Oct feeders down 30 at 117-15. Oct Class III milk up sixteen cents at 12-96. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.