02/08/07 Cattle market up on speculation

Volatile trading in the mixed wheat market as positions rolled out of March into deferred contracts. Giving wheat a boost was news that China projects a 2% decrease in winter wheat acreage due to drought which would imply a 3.6% decrease in winter wheat production. March contracts in Chicago ended 1 higher at 4.52, Kansas City even, Minneapolis up 3/4 The corn market is stagnant and that caused a sell of, March corn lost 4 1/4 to end at 3.92 1/4. Corn is comfortable waiting until today's export sales numbers and tomorrow's world supply and demand report. The market expects to see a 10-15 million bushel increase in carry out and deviation could cause a run from either the bulls or the bears. Portland trended higher, cash white up two at 5.18. Club White also 5.18 Pacific Northwest HRW 11.5 percent protein up .03, mostly 5.60. Dark Northern Spring 14 percent protein up .07 at 5.81. The market bid cattle higher over speculation that cattle could trade at $90 per hundredweight this week. Also supportive is the U.S. and South Korea opening dialogue in response to disputes over U.S. beef imports. Boxed beef cutout values showed choice cuts up 66 cents and select up 78 cents. April live cattle 95.72 up .27. March feeders 99.35, up 32. March Class III milk at Chicago unchanged at 14.60.