02/28/07 China stock drop hits futures

Market Line February 28, 2007 There were some double digit losses in wheat futures Tuesday as all the grains closed lower with Chicago May wheat closing below its 50 and 100 day moving averages. There was a general commodity sell off and Brian Hoops of Midwest Market Solutions in Yankton, South Dakota explains why. Hoops: "The reason we were down was a big decline overnight in the Chinese and the European equity markets gave us some weakness early. Also spilled over into the stock market and metals market, sharply lower in gold and silver and sharp losses in the stock market as well." Wheat futures are expected to get direction today from corn and outside markets. On Tuesday Chicago May wheat was down 12 ½ cents at 4-83 ½. May corn down 14 ¼ at 4-24 ¼. Portland cash soft white wheat mostly five cents at lower at 5-48. Club wheat 5-48. August new crop soft white three to 11 cents lower at 5-15. HRW 11.5 percent protein 5-85. Dark northern spring 14% protein 6-01. Barley at the coast 169 dollars a ton. August at 145. Live cattle futures were mixed Tuesday with feeder contracts higher on the big drop in corn. Many floor traders are saying there is no fundamental reason for live cattle to be as high as they are and they could be subject to a correction. Fund activity has been supportive. April live cattle up 15 cents at 97-45. April feeders up 47 at 104-27. April Class III milk down 30 cents at 14-26. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.