09/21/06 Profit taking in wheat futures

Marketline September 21, 2006 Wheat futures lost from one to 4 ½ cents Wednesday in what some called profit taking from Tuesday's big rally. Others noted a lower close after strong action early in the session could be seen as short-term bearish technically. The rally earlier this week was sparked by a larger than expected cut in the Australian wheat crop estimate by the government there, which could mean more export demand for the U.S. But there is concern a big jump in U.S. prices could discourage demand. Commentators say the market would like to see stronger export demand to sustain higher prices. Traders will get the weekly export sales report this morning from USDA. On Wednesday December Chicago wheat was down 1 ¼ cent at 4-07 ¾. December corn up 2 ½ at 2-49. Portland cash soft white wheat was steady at mostly 4-26. Club wheat 4-61. HRW 11.5 percent protein unchanged to lower at 5-36. Dark northern spring 14% protein down a penny at 5-31. No Portland barley bids. Cattle futures were sharply lower Wednesday. Buyers stayed on the sidelines over concerns about tomorrow's Cattle on Feed report, which is expected to be bearish. There was pressure from more weakness in boxed beef and expected lower cash fed cattle prices. Oct live cattle down 107 at 89-05. Oct feeders down 147 at 113-87. Oct Class III milk down four cents at 12-35. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.