10/10/06 Limit up wheat futures boosts cash

Marketline October 10, 2006 Shorts in wheat futures were scrambling to get out of the their positions Monday as contracts at Chicago opened 16 cents higher and nearby wheat futures at all exchanges closed limit up. That's the first limit up close at Chicago since July of 1996, the year wheat futures hit their all time record high of over seven-dollars a bushel. Feeding the bulls was talk now of an Australian drought reduced wheat crop of ten-million metric tons or less. The Aussie crop last year was near 25 million. It could mean more export demand for the U.S. and Brian Hoops of Midwest Market Solutions says the market is rationing demand. Hoops: "And we expect markets to continue to move higher until we either get the crop size known in Australia and the growing season effectively ends at harvest in December, or we get better rain showers that would change things and we have a significant pull back." On Monday December Chicago wheat was limit up 30 cents at 4-94. December corn up 18 ½ at 2-89 ½. Portland cash soft white wheat 14-15 cents higher at 4-93. Club wheat 5-23. HRW 11.5 percent protein 22-26 cents higher at 5-85. Dark northern spring 14% protein 25-26 cents higher, also 5-25. The limit up move in wheat along with higher corn was negative for cattle futures Monday and they posted triple digit losses. Friday's limited cash market action also added pressure. Dec live cattle down 152 at 87-82. Nov feeders down 292 at 108-32. Nov Class III milk down six cents at 12-32. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.