02/22/07 Commodity rally helps grain & cattle

Market Line February 22, 2007 One day outside commodities were down pressuring grain futures but Wednesday those outside markets, like oil and gold, were higher thereby helping to boost grain futures like wheat. Wheat futures at Chicago also got a technical boost by closing above its 50 day moving average, a key resistance point. Some of the elements in the news stream were actually bearish wheat with India saying it would export wheat this year barring any production shocks. Argentina increased its wheat crop estimate. And the central U.S. wheat belt continues to get moisture. Australian weather officials say El Nino is over which should mean a recovery from the drought down under, though not a sudden recovery. On Wednesday Chicago March wheat was up 11 ½ cents at 4-76. March corn up 11 at 4-26 ¼. Portland cash soft white wheat four to five cents higher at mostly 5-39. Club wheat 5-39. August new crop soft white higher at 5-12. HRW 11.5 percent protein up to nine cents higher at 5-85. Dark northern spring 14% protein five to six cents higher at 6-05. Barley at the coast 174 dollars a ton. August at 147. The rise in commodity values generally Wednesday also helped cattle futures. The market is also bullish about Friday's Cattle on Feed report expected to show low January placements. Good cash auctions helped feeders despite higher corn. April live cattle up 105 at 96-40. March feeders up 37 at 100-dollars two cents. March Class III milk up seven cents at 14-67. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.