10/10/07 Correction continues in wheat futures

Market Line October 10, 2007 Nearby wheat futures put in their 4th straight day of sharply lower closes Tuesday, however new crop at Chicago saw gains. Commentators are now suggesting the market is oversold. Weekly export inspections were reported Tuesday and were within trade expectations at 31.5 million bushels. Australia has been getting some rain this week and showers are expected to continue. Opinions vary on whether this moisture will stabilize conditions there. Ryan Kelbrantz of ADMIS at the Minneapolis Grain Exchange summarizes the factors he sees influencing the market. Kelbrantz: "Export numbers and tight balance tables should continue to support prices but we are at historical highs so I think technically we are going to continue to see a little setback here. And the USDA is going to release their monthly S&D and production reports on Friday." On Tuesday Chicago December wheat was down 14 ½ cents at 8-45 ½. New crop July Chicago up 3 ¼ at 6-60 ½. Dec corn up 2 ¾ at 3-42 ½. Portland cash soft white wheat and club wheat 20-35 cents lower at mostly 9-65. HRW 11.5 percent protein 8-21 cents lower at 9-31. Dark northern spring wheat 14% protein two to six cents lower at 9-49. Barley at the coast for November 278 dollars a ton. Cattle futures were mixed Tuesday. Live cattle contracts did see a short covering rally. There were also thoughts packers might have to do more buying this week due to last week's insubstantial trade. Dec live cattle up 25 cents at 96-50. Nov feeders down 65 at 113-25. Nov Class III milk up 22 cents at 17-04. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.