09/29/06 Wheat soars on Aussie crop woes

Marketline September 29, 2006 Wheat futures were sharply higher Thursday. Once again the spark was another estimate of Australian wheat production, this one from the Australian Wheat Board pegging the crop at from 12 to 15 million tons. That's less than the recent Australian government forecast as well as USDA's. Once prices broke through sell stops technical buying was triggered. USDA issues its Quarterly Grains Stocks and Small Grains Summary today but Marc Chiodo of Slipka Commodities in Minneapolis says it may not mean much. Chiodo: "And I am falling into this group. I think the report will be a non-event. We will sit back and see what the funds really want to do here. There is no demand to speak other than the pending Iraqi announcement or tender, depending how you want to look at it. So the cash markets are lagging behind like they have in the past and the funds are in there pushing the market betting on the come." On Thursday December Chicago wheat was up 21 ¼ cents at 4-45 ½. December corn up 10 ½ at 2-64 ¼. Portland cash soft white wheat eight to eleven cents higher at mostly 4-54. Club wheat 4-89. HRW 11.5 percent protein 10-15 cents higher at 5-54. Dark northern spring 14% protein 12-13 higher at 5-58. No Portland barley bids. Cattle futures lower Thursday. Traders await cash action on fed cattle and feeders were pressured by higher corn. Expectations are for some month-end position squaring today. Dec live cattle down 25 cents at 89-77. Nov feeders down 97 at 111-52. Nov Class III milk up three cents at 12-50. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.