10/13/06 Wheat futures drop

Marketline October 13, 2006 With the exception of some deferred or new crop contracts, wheat futures posted losses Thursday, in some cases double digit drops, following USDA reports on supply and demand. USDA's wheat numbers were friendly with a drop in U.S. wheat ending stocks to 418 million bushels, world stocks dropping to their lowest level in 25 years and Australian wheat production reduced to 11 million metric tons. Brian Hoops of Midwest Market Solutions in Yankton, South Dakota, says this was all already factored into the market. Hoops: "All that's friendly but yet we are very over bought. Need to correct further and could have some more profit taking before the weekend in the wheat." We'll see if the price drop attracts any export business. Egypt did announce a tender after the markets closed yesterday. And this morning is the delayed weekly export sales report. On Thursday December Chicago wheat was down 15 ½ cents at 5-15 ½. December corn up 14 ¼ at 2-98 ¼. Portland cash soft white wheat mixed at mostly 5-03. Club wheat 5-33. HRW 11.5 percent protein six to eight cents lower at 5-80. Dark northern spring 14% protein down 13 cents at 5-84. Live cattle futures closed higher Thursday but feeder contracts dropped on the big gains in corn futures. In its supply and demand report USDA trimmed projected beef production and slaughter for the 4th quarter. Dec live cattle up 80 cents at 87-70. Nov feeders down 152 at 105-62. Nov Class III milk up seven cents at 12-17. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.