10/23/06 Egypt buys; cattle on feed numbers

Marketline October 23, 2006 Wheat futures were mixed Friday. Fundamental news Friday was that Egypt purchased 60-thousand metric tons of U.S. soft white wheat. But Joe Victor of Allendale Incorporated says the bad news was that Egypt purchased 120-thousand tons from France. Victor: "And more incredible is the fact that during this pricing the U.S. wheat cash market was actually about $12 a ton less than the French wheat but Egypt decided to go ahead and for November delivery to pickup the majority of the purchase from France." Analysts say the technical factors are bearish at Chicago. Weather-wise the forecast is mostly dry in Australia except for the state of New South Wales and that is expected to continue to provide support for the market. On Friday December Chicago wheat was down eight cents at 5-05. December corn down 3 ¼ at 3-12 ¾. Portland cash soft white wheat two to three cents lower at mostly 4-92. Club wheat 4-92. HRW 11.5 percent protein mixed at mostly 5-71. Dark northern spring 14% protein unchanged to down a penny at 5-80. The USDA Cattle on Feed report Friday pegged the feedlot inventory on October 1st up nine percent from a year ago. Placements were down five percent and marketings were down three percent. Despite the inventory being a record initial reaction to the report was neutral. Ahead of the report Friday Dec live cattle up 12 cents at 87-07. Nov feeders up a nickel at 104-75. Nov Class III milk up 46 cents at 12-89. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.