10/26/06 Wheat futures lower despite AWB estimate

Marketline October 26, 2006 Wheat futures closed lower Wednesday at all three exchanges. This after being higher early in the session. Ryan Kelbrantz of ADMIS at the Minneapolis Grain Exchange says the early strength came from a downward revision in the Australian wheat crop by the Australian Wheat Board. Kelbrantz: "They revised its production estimate to nine to eleven million metric tons. That number is nearly 65% below last year's 25 million metric ton crop." Profit taking and technical selling took contracts lower late in the session. Some commentators note that yesterday's price action leaves a bearish tilt to the charts for today. Key fundamental input this morning will be USDA's weekly export sales report for wheat. Improving weather in the U.S. Plains is seen as putting pressure on new crop wheat contracts at Kansas City and Chicago. On Wednesday December Chicago wheat was down 5 ¾ cents at 5-16 ¾. December corn up 2 ¾ at 3-27. Portland cash soft white wheat was mixed at mostly 5-02. Club wheat 5-02. HRW 11.5 percent protein down nine cents at 5-76. Dark northern spring 14% protein down eight to nine cents at 5-87. Live cattle futures were higher Wednesday while most feeder contracts closed lower. Live contracts got support from ideas cash fed cattle will be stronger this week. Higher corn futures were a factor for feeders. Dec live cattle up 22 cents at 88-57. Nov feeders down 37 at 104-45. Nov Class III milk down 15 cents at 12-44. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.