01/23/07 Wheat futures mixed; cattle lower

Market Line January 23, 2007 Wheat futures followed corn lower Monday and there was bear spreading between old crop and new crop which helped deferred contracts close higher. That's something Brian Hoops of Midwest Market Solutions says we will be seeing more of. Hoop: "Traders really like the bear spreads in the wheat. I think you will continue to see the spread between Chicago old crop-new crop, Kansas City old crop-new crop and Minneapolis continue to widen out as new crop Minneapolis needs to gain some acres to gain compete against corn and beans this spring while old crop supplies remain fairly large with the demand being below average." Egypt purchased 175-thousand tons of wheat over the weekend but only 55-thousand of it was from the U.S. It was soft red winter. The rest is coming from Russia. Nigeria is also said to have purchased 195-thousand tons of U.S hard red winter wheat. On Monday Chicago March wheat was down two cents at 4-65. March corn down 2 ½ at 4-04 ¼. Portland cash soft white wheat steady to two cents lower but mostly 4-98. Club wheat 4-98. HRW 11.5 percent protein mixed at 5-60. Dark northern spring 14% protein down two cents at 5-74. Barley at the coast 169 dollars a ton. Cattle futures were lower Monday. Pressure on live contracts came from lower boxed beef values and February's premium to cash which fueled selling. Thoughts high corn and muddy feedlots will reduce placements pressured feeders. Feb live cattle down 80 at 90-25. March feeders down 120 at 92-37. Feb Class III milk down four cents at 13-66. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.