10/23/07 Russian export tax rumors help wheat futures

Market Line October 23, 2007 Wheat futures posted double digit gains Monday. Weakness in crude oil and other markets plus a higher U.S. dollar had wheat lower in early trading but rumors that Russia is considering a 50% export tax instead of 30% helped turn the market higher. Weekly export inspections were below trade expectations. Peter Georgantones of Investment Trading Services in Bloomington, Minnesota was surprised the day's action. Georgantones: "Again it is a powerful, volatile market and that is three days up in a row here, which I think technically is a strong situation for the next 24 hours at least." On Monday Chicago December wheat was up 15 ½ cents at 8-71. July new crop at Chicago up 2 ¼ at 6-95. Dec corn down 5 ¾ at 3-64 ½. Most exporters were not issuing bids for white wheat at Portland Monday due to adequate supplies to load upcoming vessels. December soft white was bid at 9-80 to 9-95, up a nickel to down a nickel. HRW 11.5 percent up 19 cents at 9-84. Dark northern spring wheat 14% protein up 19 cents at 10-10. Barley at the coast 245 dollars a ton. Live cattle futures were higher Monday with feeder contracts called firm. Higher cash fed cattle prices Friday helped live cattle but the placement number in the Cattle on Feed report, 109 percent, kept deferred month gains to a minimum. Lower corn was positive for feeders. Dec live cattle up 27 cents at 97-57. Nov feeders up 32 at 111-62. Nov Class III milk down 18 cents at 17-70. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.