09/06/06 Egypt buys some U.S. wheat

Marketline September 6, 2006 After a long holiday weekend, wheat futures started the new month of September mixed Tuesday. Brian Hoops of Midwest Market Solutions in Yankton, South Dakota, says export news helped wheat futures early in the session but they backed off the remainder of the trading day. Among that export news an Egyptian purchase of 115-thousand tons of U.S. soft red winter wheat, according to USDA. Hoops says Morocco also purchased U.S. wheat. Hoops: "French wheat rallied to 2 ½ year highs overnight giving us some strength and Algeria bought 250-thousand tons of optional origin wheat. Taiwan is tendering for 98-thousand U.S. wheat." There were weekend rains in Kansas which helped alleviate the moisture deficits ahead of winter wheat planting there but more is needed. There is a chance of precipitation in Australia where dryness has been a problem for the wheat crop there. Chicago December wheat challenged a key resistance level of 4-30 but closed near the lows of the day and well below the opening at 4-22 up 2 ½ cents. December corn down 1 ½ at 2-44 ¼. Portland cash soft white wheat were one to three cents higher at mostly 4-10. Club wheat 4-45. HRW 11.5 percent protein lower at 5-41. Dark northern spring 14% protein down a penny at 5-58. All live cattle futures contracts and several feeder contracts made new highs Tuesday. Higher boxed beef values and ideas Korea will soon approve resumption of U.S. beef imports provided fundamental support. A strong rally in lean hog futures also helped cattle. Oct live cattle up 118 at 94-53. Oct feeders up 163 at 117-95. Oct Class III milk down nine cents at 12-66. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.