10/19/06 The inevitable wheat market correction?

Marketline October 19, 2006 Wheat futures were down hard again Wednesday in what many an analyst says is an evitable correction in an overbought market. Adding to the bearish tone are rains in the U.S. Plains and also in parts of dry Australia. Commentators says the wheat market is still vulnerable to more long liquidation selling. Joe Victor of Allendale Incorporated says one thing that could stop the decline is the weekly export sales report due out this morning for which estimates range from 250-thousand to 600-thousand tons. Victor: "These will be the sales actually ending on October 12th. And up to that point we didn't see a great deal of large ticket items that were being sold so we may see something towards the middle to lower end of the range. Again, looking for that fundamental report Thursday morning to see if we can stop this slide in the wheat." On Wednesday December Chicago wheat was down 18 ½ cents at 5-12 ½. December corn down 5 ½ at 3-15 ½. Portland cash soft white wheat was steady to five cents lower at mostly 5-13. Club wheat 5-33. HRW 11.5 percent protein was mixed at mostly 5-70. Dark northern spring 14% protein down a dime at 5-75. Lower corn futures and higher boxed beef values had cattle futures closing higher Wednesday. Tomorrow USDA issues the monthly Cattle on Feed report. Dec live cattle up 52 cents at 87-85. Nov feeders up 50 at 105-07. Nov Class III milk up six cents at 12-43. After the market close USDA reported September milk production was up two percent over September of 2005. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.