10/15/07 No USDA surprise and wheat futures fall

Market Line October 15, 2007 Wheat futures closed sharply lower Friday in what was described as your typical "buy the rumor sell the fact" trading. USDA's Supply and Demand report had friendly numbers for wheat but they were apparently in the market. USDA pegged U.S. wheat ending stocks at 307 million bushels, world ending stocks at 107 million metric tons and Australian wheat production at 13.5 million metric tons. Brian Hoops of Midwest Market Solutions in Yankton, South Dakota believes it would take something more for futures to take a run at new highs. Hoops: "The thing that will drive wheat prices is if the Australian crop, once they start harvesting, turns out to be worse than what it is expected to be. If they abandon the crop or yields come in much worse, we will see prices move higher in an effort to ration the crop." Hoops says very hot and dry weather in the U.S. Plains would also drive prices up. On Friday Chicago December wheat was down 25 ½ cents at 8-57 ½. New crop Chicago July down 5 ½ at 6-80 ½. Dec corn up 7 ¼ at 3-51. Portland cash soft white wheat and club wheat were 3-5 cents higher at mostly 10-15. HRW 11.5 percent protein 12-16 lower at 9-67. Dark northern spring wheat 14% protein 15-21 lower at 9-90. Barley at the coast 275 dollars a ton. Cattle futures were weaker Friday. Feeder contracts were hit by higher corn futures and live contracts by a lack of cash trading. Dec live cattle down 55 cents at 97-22. Nov feeders down a dollar at 113-47. Nov Class III milk up 13 cents at 17-55. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.