01/05/07 Egypt buys but wheat still drops

Marketline January 5, 2007 It was another day of losses for wheat futures Thursday as long liquidation in corn spilled over to wheat. Crop friendly weather in the U.S. Plains has also been a negative factor. Even some good export news didn't stop wheat's fall. Egypt purchased 60-thousand metric tons each of U.S. soft white and U.S. soft red winter wheat for early February shipment. They also bought from Russia and Kazakhstan but not France or Argentina, which some traders thought they would. Chicago March wheat has dropped over 56 cents in the past six sessions which has some analysts saying the sell off is overdone. On Thursday Chicago March wheat was down nine cents at 4-67 ½. March corn down 8 ¼ at 3-62 ¼. Portland cash soft white wheat two to five cents lower at mostly 4-85. Club wheat 4-85. HRW 11.5 percent protein down a dime at 5-42. Dark northern spring 14% protein down a dime at 5-63. Barley at the coast lower at 172-dollars a ton. USDA unveiled its expanded BSE minimal risk rule proposal Thursday, which if implemented later this year, pretty much would open the U.S. border to all Canadian cattle and beef. Cattle futures were lower Thursday though losses were trimmed late in the session by lower corn. Technical selling was cited. The impact of last weeks winter storm in the Plains remains uncertain. Expectations are for cash fed cattle to trade above 90 dollars this week. Feb live cattle down 87 cents at 92-22. March feeders down 40 at 98-60. Feb Class III milk up 23 cents at 13-43. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.