12/12/06 Wheat futures up after USDA report

Marketline December 12, 2006 Wheat futures posted modest gains Monday despite a USDA report which had both U.S. and world wheat ending stocks increasing from last month's forecast. Brian Hoops of Midwest Market Solutions in Yankton, South Dakota, says the USDA numbers were pretty much expected. Hoops: "Now most the jump in U.S. ending stocks occurred because of the slow down in exports. USDA reduced the export forecast by 25 million bushels." The reduced exports all fell on the hard red wheat classes with the newest projection for soft white exports actually up 10 million bushels over the November report. Wheat futures benefited from news that Egypt purchased U.S. wheat over the weekend. The purchase included 60-thousand tons of soft white and 55-thousand of soft red winter. The market continues to await an Iraqi tender for 100-thousand tons of wheat. On Monday, Chicago March wheat was up 4 ¼ cents at 4-90. March corn up 2 ¼ at 3-70 ¾. Portland cash soft white wheat one to two cents lower at mostly 4-86. Club wheat 4-86. HRW 11.5 percent protein 4-5 cents higher at mostly 5-71. Dark northern spring 14% protein unchanged to down two cents at mostly 5-78. Cattle futures were lower Monday. While last week's fed cattle trade was a dollar higher thoughts are prices will be down this week. Higher corn was added pressure for feeder contracts. Feb live cattle down 62 cents at 89-10. Jan feeders down 80 at 99-62. Jan Class III milk up three cents at 13-08. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.