10/22/07 Wheat gets a rally, cattle the on feed report

Market Line October 22, 2007 Wheat futures were mostly limit up Friday Many traders said the market had come down so much recently it was due for a rally. Cited as positive news was that Russia may slap a higher tariff on its exports starting next month of 30 percent. Traders also liked U.S. wheat acreage estimates from USDA and Informa that came in under 65 million acres for 2008. Ryan Kelbrantz of ADMIS at the Minneapolis Grain Exchange provides his market outlook. Kelbrantz: "Short term I think the tight world stocks and favorable export numbers should lend underlying support to wheat prices, but the long term picture sees major increases in wheat acres and lower prices. Technically we are still trading well above major moving averages and substantial gaps." On Friday Chicago December wheat was up 30 cents at 8-55 ½. July new crop at Chicago up 17 ¼ at 6-92 ¾. Dec corn up three at 3-70 ¼. Nearest bids for soft white wheat at Portland are for December at 9-80 to $10, up a nickel. HRW 11.5 percent 28-30 cents higher at 9-65. Dark northern spring wheat 14% protein 30-33 higher at 9-87. Barley at the coast 270 dollars a ton. USDA's Cattle on Feed report Friday pegged the feedlot inventory down four percent from a year ago. Placements last month up nearly nine percent, and marketings in September down about three percent. Futures were lower ahead of the report with Dec live cattle down 40 cents at 97-30. Nov feeders down 92 at 111-30. Nov Class III milk up eight cents at 17-88. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.