11/01/06 Wheat futures tumble; cattle mixed

Marketline November 1, 2006 Wheat futures fell sharply Tuesday with Chicago leading the way. There was an improvement from last week in U.S. winter wheat crop ratings with 60% of the crop rated good to excellent. Technical selling took place as wheat futures were in overbought territory after a month long rally produced ten-year highs. Mark Chiodo of Slipka Commodities at the Minneapolis Grain Exchange says Tuesday's weakness could carry over to today and U.S. wheat, particularly soft wheat needs to come down to be competitive on the world market. He says before yesterday's drop; Chiodo: "We were still something in the neighborhood of $10-20 a ton on the soft wheat higher than our competitors depending upon who is quoting and where they are at. So, it feels like we have a little more downside to go here." The Ukraine has resumed wheat exports, which had ground to a halt after the government began requiring export licenses. On Tuesday December Chicago wheat was down 18 cents at 4-83. December corn down 8 ¾ at 3-20 ¾. Portland cash soft white wheat was pressured by Chicago futures and was seven to nine cents lower at mostly $5.00. Club wheat mostly 5-15. HRW 11.5 percent protein six to nine lower at 5-59. Dark northern spring 14% protein six to eight cents lower at 5-75. Live cattle futures were lower Tuesday on expectations of only steady cash cattle this week and also the movement of December longs into February. Lower corn futures helped feeder contracts which closed higher. Dec live cattle down 85 cents at 87-82. Jan feeders up 55 at 101-50. Dec Class III milk down a nickel at $13.00 I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.