10/18/06 Funds don`t buy and wheat futures fall

Marketline October 18, 2006 Wheat futures were higher in early trading Tuesday but when funds didn't buy any more prices fell and contracts closed lower with some double digit losses. Joe Victor of Allendale Incorporated says Chicago and Kansas City December contracts are very near a key technical level, which if prices fall below, could signal significant selling. He says funds may be switching to soft commodities like cotton, cocoa and sugar. Victor: "There very well could be a little bit of a switch out here where the funds are deciding to pile into the softs taking some of the pressure off the corn and wheat markets. We are not saying totally leaving, but taking some of the pressure off, grabbing some profit out of this market." Another analyst says it looks like "topping" action in wheat futures. There wasn't much new fundamental news though there is some rain in the forecasts for parts of Australia and Argentina has been getting moisture. On Tuesday December Chicago wheat was down 11 ½ cents at 5-31. December corn up 4 1/4 at 3-21. Portland cash soft white wheat was 10-12 cents higher at mostly 5-16, still benefiting from Monday's higher futures and Tuesday's early strength. Club wheat 5-46. HRW 11.5 percent protein down 15-17 at 5-76. Dark northern spring 14% protein down nine cents at 5-84. Cattle futures were mixed Tuesday. Spreading activity continued in the live pit. Higher boxed beef prices were supportive. Higher corn was negative for feeders. Dec live cattle down a dime at 87-32. Nov feeders down 110 at 104-57. Nov Class III milk up a penny at 12-37. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.