10/09/06 Wheat bull needs feeding

Marketline October 9, 2006 Wheat market analysts are saying the market needs some new news either on the demand front or more weather problems from the southern hemisphere to keep support or make a run at more new highs this week. It's the old adage that a bull market needs to be fed. Something that could dampen rallies are new higher margin requirements taking affect at the Chicago Board of Trade aimed at taming a volatile wheat market down somewhat. Wheat futures were mixed Friday with Minneapolis showing the most weakness. Peter Georgantones of Investment Trading Services in Minnesota is being cautious right now. Georgantones: "I think wheat still has a story to it but I am long gone on my longs right now waiting for good, healthy correction." Argentina is saying it may not be able to meet all its export commitments and there is no significant rain in the forecast this week for Australia. On Friday December Chicago wheat was unchanged at 4-64. December corn down ¾ at 2-71. Portland cash soft white wheat steady to a penny higher at mostly 4-78. Club wheat 5-08. HRW 11.5 percent protein down three cents at mostly 5-57. Dark northern spring 14% protein six to eight lower at 5-58. Cattle futures were lower Friday as traders awaited for cash market developments which hadn't occurred by the time the pits closed. USDA reports year to date beef production is up 5.8% and with more beef now going into export channels U.S. consumers don't have to absorb it all. Dec live cattle down 75 cents at 89-35. Nov feeders down 35 at 111-25. Nov Class III milk down eight cents at 12-40. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.