04/26/07 Funds buy wheat futures on world supply concerns

Market Line April 26 , 2007 Wheat futures posted double digit gains Wednesday as the funds came in buying. The rally pushed wheat to new contract highs in Chicago and Minneapolis. At times during the session wheat was limit up. There was some spillover support from corn to which is facing planting delays due to wet weather. Mark Chiodo of Slipka Commodities at the Minneapolis Grain Exchange says weather is the key. Chiodo: "We are all glued to the Weather Channel here and their latest nuance. That will be the game from here on out. There will be a lot of volatility and I think we will continue to see that for at least the next 60-90 days here in the market." Elsewhere in the world there was some rain in Australia. French wheat futures set new highs on dryness concerns in France and parts of the Black Sea region. Indian government wheat purchases from producers are lagging behind last year. On Wednesday Chicago July wheat was up 23 cents at 5-20 ½. July corn up 10 ½ at 3-81 ¾. Old crop soft white wheat trading was slow but there was some new crop trading. Portland cash soft white wheat was five to eight cents higher at 6-10. Club wheat 6-10. August new crop soft white two to 13 cents higher at 5-48. HRW 11.5 percent protein eight to 13 cents higher at 6-01. Dark northern spring 14% protein 15 to 16 higher at 6-31. Barley at the coast 170 dollars a ton. August at 152. Cattle futures were mixed Wednesday. Boxed beef was down again. Higher corn also added pressure. June live cattle up two cents at 93-32. August feeders down 110 at 111. June Class III milk up 18 cents at 17-58. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.