11/07/06 Some dryness in China

Marketline November 7, 2006 Wheat futures closed higher Monday. Support came from concerns about the slow start for the soft red winter wheat crop. Also traders are taking note of some dry areas in China's winter wheat producing region. There has been a two month drought in China's Shandung Province. Some market observers say that is more of a factor for new crop wheat than old crop. Weekly export inspections were under trade expectations at only 9.8 million bushels. There has been some wet weather in Australia but now some areas are into harvest down under and the rains are disrupting that. Estimates of U.S. winter wheat plantings being up 10-15 percent over last year are being mentioned. Traders remain cautious ahead of Thursday's USDA reports on production and supply and demand. On Monday December Chicago wheat was up 5 ½ cents at 4-98. December corn up 1 ½ at 3-43 ½. Portland cash soft white wheat was mixed at mostly 4-99. Club wheat 5-14. HRW 11.5 percent protein one to four cents higher at 5-73. Dark northern spring 14% protein was down seven to up seven but mostly 5-95. Cattle futures were lower Monday. Lower cash fed cattle last week and expectations of further declines this week pressured live cattle. Higher corn also remains bearish and most feeder contracts set new lows. Dec live cattle down 35 cents at 85-55. Jan feeders down 80 at 96-32. Dec Class III milk down 28 cents at 13-04. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.