10/17/06 Chicago wheat futures sharply higher

Marketline October 17, 2006 Wheat futures were higher Monday with Chicago the strongest market posting double digit gains. Funds were large buyers late in the session at Chicago. A private crop forecast in Australia said the wheat crop there probably wouldn't top 10 million metric tons which confirmed other recent estimates of the drought reduced crop down under. Weekly export inspections for wheat came in at the upper end of trade expectations at over 18 million bushels. New crop contracts got pressure from improving moisture in the U.S. plains and ideas planted acreage will be up significantly. USDA reported Monday afternoon that 79 percent of the U.S. winter wheat crop had been planted to start this week, just one point behind the five year average for now. Emergence at 52 percent is four points behind average. On Monday December Chicago wheat was up 17 cents at 5-42 ½. December corn up 2 ¼ at 3-16 ¾. Portland cash soft white wheat steady to two cents higher at mostly 5-07. Club wheat 5-37. HRW 11.5 percent protein was mixed at 5-93. Dark northern spring 14% protein three to seven cents higher at mostly 5-90. Live cattle futures were lower Monday with feeder contracts higher. Spread trading was a factor in the live pit. A steady cash trade is the expectation for the week. Feeders were helped by ideas the big run up in corn futures may be over. Dec live cattle down fifty cents at 87-42. Nov feeders up 80 at 105-67. Nov Class III milk up nine cents at 12-36. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.