11/03/06 Corn rally hurts feeders helps wheat

Marketline November 3, 2006 Wheat futures closed higher Thursday but well off the day's highs. Bullish private forecasts for the corn crop sent corn futures limit up at times and carried wheat with it before backing off. Mark Chiodo of Slipka Commodities at the Minneapolis Grain Exchange says the weekly export sales report for wheat was also friendly. Chiodo: "The wheat number was very good at 938-thousand tons. That's about 34 million bushels. Year-to-date that is 480 million in sales versus 562 million a year ago. So we are lagging last year by about 80-million or so." Japan did cancel wheat from their weekly tender due to high prices. Increased rain for the central and southern plains next week was seen as a possible negative for new crop futures. On Thursday December Chicago wheat was up four cents at 4-91 ½. December corn up 11 ¼ at 3-44 ¾. Portland cash soft white wheat bids were mixed but mostly $5. Club wheat 5-15. HRW 11.5 percent protein up a nickel at 5-69. Dark northern spring 14% protein unchanged to four cents higher at 5-86. The rally in corn futures hit feeder cattle contracts hard Thursday with some contract months down the limit. While nearby live cattle were also lower some deferred months were higher on ideas fewer cattle will be placed into feedlots. Dec live cattle down 80 cents at 86-75. Jan feeders down $3 at 98-42. Dec Class III milk was up 23 cents at 13-38. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.