10/27/06 Wheat futures lower; cattle rise

Marketline October 27, 2006 Wheat futures were mostly lower Thursday with carryover technical weakness from Wednesday as a factor. India said it had no intentions of tendering for wheat in the near future and that was taken as bearish as was news Tunisia purchased Russian wheat instead of U.S. Russia also reported a larger wheat crop this year than previously thought. Weekly export sales came in at 460,800 tons, within trade expectations. There is commentary that a more significant technical break may be in order to stimulate U.S. wheat sales. The International Grains Council said world wheat area in 2007 is expected to increase by four percent over this year. On Thursday December Chicago wheat was down 9 ¼ cents at 5-07 ½. December corn unchanged at 3-27. Portland cash soft white wheat was mixed at mostly 5-01. Club wheat 5-16. HRW 11.5 percent protein 5-73. Dark northern spring 14% protein 5-84. Cattle futures were higher Thursday with live contracts putting up the best gains. There was some short covering and then when technical chart lines were broken the funds bought. One reason cited for the strength was news that Japan was letting in 900 plus tons of frozen beef that has been held in customs for the past year, which was suggestive that barriers to U.S. beef may be lowering. Dec live cattle up 2-07 at 90-65. Nov feeders up 55 at 105. Nov Class III milk up eight cents at 12-52. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.