10/09/07 Limit losses in wheat futures; Portland white wheat follows

Market Line October 9, 2007 Wheat futures were nearly all limit down Monday across the board and commentators note that synthetic options suggest December wheat could drop another 16 cents today. There was aggressive speculative selling. Among the factors cited were pressure from outside markets like weaker crude oil and metal markets but a higher U.S. dollar. There was also some rain in Australia although many traders doubt the moisture will make any difference now. There is a general sense that all of the bullish market factors have "peaked" and the focus will now be on new crop production around the world. On Monday Chicago December wheat was down 30 cents at 8-30. Chicago new crop July down 29 ¼ at 6-57 ¼. Dec corn down 2 ½ at 3-39 ¾. Portland cash soft white wheat and club wheat 35-45 cents lower at mostly 9-95 on the limit down move in futures as well as an increase in country selling. HRW 11.5 percent protein 30-35 lower at 9-39. Dark northern spring wheat 14% protein 23-30 cents lower at 9-52. No coast barley bids for October. Cattle futures closed slightly higher Monday and were called firm. There was a short covering rally. A bearish tone remains in the air however because of another suspension of U.S. beef imports by South Korea and the recalls of beef patties due to E. coli. Dec live cattle up 12 cents at 96-25. Nov feeders up 40 at 113-90. Nov Class III milk down 38 cents at 16-82. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.