09/13/06 Wheat futures lower after USDA report

Marketline September 13, 2006 Wheat futures posted some stiff losses Tuesday in the wake of USDA's crop production and supply and demand reports. Wheat numbers came in about as expected with world wheat production and stocks lowered, but there was no positive surprise and funds were sellers. There was also pressure from corn. Still, Mike Kruger of the Money Farm near Fargo, North Dakota remains bullish wheat longer term. Kruger: "Wheat overall, I think the world wheat numbers still indicate that at some point in time this market will give us higher prices. We have had smaller crops in all the major exporting countries with the exception of Canada. And I really still think the critical issue will be whether the Australian crop turns out to be 16 million tons or the 19 million tons the USDA gave us today. And what goes on in Argentina as well." On Tuesday December Chicago wheat was down 10 ½ cents at 4-02 ½. December corn down 5 ¾ at 2-37 ¾. Portland cash soft white wheat was mixed but not well tested at mostly 4-20. Club wheat 4-55. HRW 11.5 percent protein down eight cents at 5-27. Dark northern spring 14% protein two to ten cents lower at 5-35. No Portland barley bids. Cattle futures posted small gains Tuesday. Traders are generally awaiting cash market developments. In its supply and demand report USDA trimmed 2006 beef production by 100 million pounds and increased exports by 20 million pounds. Oct live cattle up 25 cents at 92-10. Oct feeders up 20 at 118-05. Oct Class III milk down four cents at 12-25. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.