10/03/07 Profit taking sets back wheat futures

Market Line October 3, 2007 It was mostly limit down in wheat futures Tuesday on what was called profit taking in an overbought market. A piece of negative fundamental news was Egypt buying 80-thousand tons of Russian wheat and none from the U.S. Joe Victor of Allendale Incorporated says there were outside influences on grains too. Victor: "The dollar did strengthen a little bit. We saw the gold getting beat up a little bit. Crude oil also some weakness. So we are seeing maybe a little bit of a confidence builder in the economy. Some of the investment funds letting go of some of the tangible commodities. Not ready to agree 100% because it wasn't across the board in the soft agricultural commodities. It was those that tend to be a little top heavy than anything else." On Tuesday Chicago December wheat was down 30 cents at 9-22 ½. Chicago July 08 wheat down 30 at 6-64. Dec corn down 20 at 3-48 ¾. Despite the lower futures Portland cash soft white wheat was 3-5 cents higher at mostly 10-40. Club wheat 10-40. HRW 11.5 percent protein 20-30 cents lower at 9-84. Dark northern spring wheat 14% protein 25-28 lower at 9-72. Barley at the coast 300 dollars a ton. Live cattle futures were lower Tuesday with feeder contracts posting gains. Traders are concerned about lower cash cattle this week. Limit down moves in wheat and corn helped feeders. Dec live cattle down 62 cents at 97-97. Nov feeders up 72 at 115-77. Nov Class III milk up 11 cents at 17-62. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.