09/07/06 Wheat futures lower; cattle mixed

Marketline September 7, 2006 Wheat futures closed lower Wednesday in what some called a day of consolidation. Forecasts for a little rain Australia and improving soil moisture in the U.S. southern Plains were negative fundamental factors, but Brian Hoops of Midwest Market Solutions in Yankton, South Dakota, says profit taking was a feature yesterday. Hoops: "After a 50-cent rally in Chicago wheat we were definitely due for some sort of a correction. Could be another leg higher in wheat yet as demand remains strong and we see the funds still holding pretty big shorts in Chicago wheat. So we may see another leg higher but I think you have to have some technical strength and with corn and beans lower it is going to be hard for wheat to sustain any type of a rally in here." Private estimates out Wednesday for the U.S. corn crop had production higher than USDA's last forecast. USDA updates its numbers next week. On Wednesday December Chicago wheat was down a nickel at 4-17. December corn down 3 ½ at 2-40 ¾. Portland cash soft white wheat steady to a penny higher at mostly 4-10. Club wheat 4-45. HRW 11.5 percent protein six to nine cents lower at 5-33. Dark northern spring 14% protein three to seven cents lower at 5-51. No Portland barley bids. There were more new highs for cattle futures Wednesday though contracts closed mixed. Higher boxed beef values helped live cattle while estimates for the corn crop and rains in the southwest helped feeder contracts. Firm to higher cash fed cattle prices are expected this week. Oct live cattle down seven cents at 95-45. Oct feeders up 115 at 119-10. Oct Class III milk down a penny at 12-65. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.