02/01/07 Weather concerns help wheat futures

Market Line February 1, 2007 Wheat futures were higher Wednesday on both technical and fundamental support. Fundamentally, Stats Canada reported grain stocks lower than the trade had anticipated. Winter kill concerns remain regarding some cold weather headed for the U.S. soft red winter wheat belt. Joe Victor of Allendale Incorporated says wheat had also been getting down to where it would calculate into feed rations. Victor: "Not necessarily just here in the U.S but globally as well. Like South Korea buying China feed wheat. And of course Israel is looking for feed barley and feed wheat. So it has the market trying to create a little bit more divergence between the milling value of wheat and the corn." This morning traders get the weekly export sales report. On Wednesday Chicago March wheat was up eight cents at 4-67 ½. March corn down ¾ at 4-04. Portland cash soft white wheat one to three cents higher at mostly 5-06, Club wheat 5-06. HRW 11.5 percent protein 5-64. Dark northern spring 14% protein 5-77. Barley at the coast 172 dollars a ton. Cattle futures were higher Wednesday on technical support with index funds the prominent buyers. Traders also think this week's cash trade could be slightly higher as cold weather in the Plains slows supply. Traders also noted two consecutive days of good slaughter numbers, 126-thousand head each. April live cattle up 55 cents at 93-17. March feeders up a dollar at 95-85. March Class III milk down a nickel at 14-18. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.