01/10/07 More losses for wheat futures

Marketline January 10, 2007 Speculative selling amid concerns that index funds will be moving large positions out of wheat and corn drove wheat and corn futures lower Tuesday. Mark Chiodo of Slipka Commodities at the Minneapolis Grain Exchange says a Commitment of Traders report showed large long positions being held by those index funds. Chiodo: "They came out with an index fund net long of 421-thousand contracts in the corn pit, that's futures and options. That's versus commercials which have an even larger sizeable short of 566-thousand contracts. Index long in the wheat is also fairly sizeable, 201-thousand contracts versus commercial shorts of &.171-thousand contracts." Given the recent price break in wheat traders have been looking for export business to pick up. Friendly weather in the U.S. Plains has also been bearish for wheat. On Tuesday Chicago March wheat was down 11 cents at 4-53. March corn down nine at 3-54 ½. Portland cash soft white wheat was steady to three cents lower at mostly 4-84. Club wheat 4-84. HRW 11.5 percent protein lower at 5-41. Dark northern spring 14% protein lower at 5-51. Barley at the coast 167 dollars a ton. Cattle futures were also lower Tuesday. Futures prices are waiting for the cash market to catch up. Large feedlot show lists are seen this week because of the last snowstorm in the Plains so packers can be choosy. At least one major packer was cutting hours today. Feb live cattle down 95 cents at 92-30. March feeders down 80 at 97-05. Feb Class III milk unchanged at 13-52. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.