10/04/06 Iraqi wheat purchase disappoints

Marketline October 4, 2006 Wheat futures closed lower Tuesday. Some commentary pointed to a general commodity sell-off as the CRB index was sharply lower Tuesday. But for wheat in particular there may have been some buy the rumor sell the fact selling as USDA reported the sale of 200-thousand metric tons of U.S. hard red winter wheat to Iraq. The quantity of the sale was also on the low side of trade expectations. Dry weather in the southern hemisphere has been bullish for wheat but Argentina was getting some rain this week and may see a wetter pattern. Also long term forecasts show some possible rain for dry Australia early next week. On Tuesday December Chicago wheat was down 6 ½ cent at 4-39 ½. December corn down 3 ¾ at 2-64. Despite the lower Chicago futures Portland cash soft white wheat was steady to a penny higher at mostly 4-59. Club wheat 4-99. HRW 11.5 percent protein down six cents at 5-50. Dark northern spring 14% protein down a nickel at 5-52. Some late selling turned live cattle futures lower Tuesday as chart support failed and technical selling was triggered. Lower corn futures did help feeder contracts post minimal gains. Generally traders are waiting for this week's cash fed cattle action. Dec live cattle down 105 at 89-45. Nov feeders up seven at 111-27. Nov Class III milk unchanged at 12-40. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.