09/25/06 Wheat futures lower; on feed report

Marketline September 25, 2006 Wheat futures closed lower Friday on profit taking but Chicago still gained over 26 cents on the week. There were thoughts the recent rally went too far, too fast. Beneficial rains in the U.S. Plains also added pressure and there was some moisture creeping into forecasts for Argentina and Australia where droughts are taking a toll on wheat crops, though much more moisture would be needed. There are rumors of Iraq buying a large amount of wheat from the U.S. but nothing has been confirmed. Informa Economics put out an estimate of 2007 U.S. wheat acreage forecasting it at 62.5 million acres, which would be up 4.6 percent from this year. On Friday December Chicago wheat was down 2 ½ cents at 4-19. December corn down two at 255- ¼. Portland cash soft white wheat higher at 4-36. Club wheat 4-71. HRW 11.5 percent protein lower at 5-32. Dark northern spring 14% protein five to seven cents lower at 5-36. The cattle trade was expecting a bearish Cattle on Feed report from USDA Friday and it got it. The feedlot inventory on September 1st was up 10 percent. August placements were up 15 percent from last year's low level. Marketings up two percent. Ahead of the report cattle futures were higher in pre-positioning. Oct live cattle were up 35 cents at 90-10. Oct feeders up 90 at 115-50. Oct Class III milk up 20 cents at 12-70. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.