01/09/07 Worries about index funds

Marketline January 9, 2007 Wheat futures posted losses Monday, the sixth down day in the past seven trading sessions. Traders liquidated grains on expectations that index funds will be repositioning and selling wheat and corn. Mark Chiodo of Slipka Commodities at the Minneapolis Grain Exchange, expects what the index funds do, or don't, will remain a factor this week, along with developments for corn. Chiodo: "If these guys don't come in and blowing on the market pretty heavily I think this thing will hold its own at the moment. A lot of different analysts are expecting a low in the corn market early this week depending on who you talks. And a lot of folks are expecting a friendly corn report coming out Friday morning. So those are the keys were are looking at." Weekly export inspections for wheat were just under 20 million bushels and within trade expectations. On Monday Chicago March wheat was down 6 ¼ cents at 4-64. March corn down 4 ¾ at 3-63 ½. Portland cash soft white wheat down a penny at 4-83. Club wheat 4-83. HRW 11.5 percent protein unchanged to two cents lower at 5-47. Dark northern spring 14% protein five to seven cents lower at 5-59. Barley at the coast 168 dollars a ton. Last week's higher cash trade, higher boxed beef and a forecast for another winter storm for the U.S. Plains all proved positive for cattle futures Monday and contracts closed higher. Feb live cattle up 67 cents at 93-25. March feeders up 20 at 97-85. Feb Class III milk up 11 cents at 13-52. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.