09/20/06 Aussie crop estimate rallies wheat

Marketline September 20, 2006 Wheat futures posted double digit gains Tuesday. The spark was an Australian government estimate of an Aussie wheat crop of only 16.4 million tons. That's down from a June estimate of nearly 23 million and much less than last year's 25 million plus crop down under. In their most recent forecast the USDA still carried the Australian wheat crop at 19.5 million tons. World wheat ending stocks were already forecast to be about the tightest on record. And in Argentina grain traders are saying one third of that nation's wheat crop is suffering due to dry weather. It all has U.S. traders thinking more export business will be coming this way. On Tuesday December Chicago wheat was up 13 ½ cents at 4-09. December corn down 1 ¼ at 2-46 ½. Portland cash soft white wheat benefited from higher Chicago futures and was three to four cents higher at mostly 4-24. Club wheat 4-59. HRW 11.5 percent protein 11-13 cents higher at 5-38. Dark northern spring 14% protein 10-13 cents higher at 5-32. No Portland barley bids. Cattle futures gave back Monday's gains Tuesday. There is nervousness about the cash fed market and expectations for this Friday's Cattle on Feed report are bearish. Oct live cattle down 78 cents at 90-13. Oct feeders down 83 at 115-35. Oct Class III milk was down a penny at 12-39. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.