11/19/07 Analyst sees high cattle prices continuing

Wheat futures closed lower on Friday. Chart based selling and around of profit taking developed early in the wheat market and drove the contracts down 2% and below the 100 day moving average. On Friday Chicago December wheat was down 16 to 7.49 ½. Kansas City December was off 12 ½ while Minneapolis lost 8 cents. December corn up 4 ¾ to 3.79 ½. Portland cash white 9.75 Club White 9.75. Pacific Northwest HRW 11.5 percent protein down 11 to 8.89. Dark Northern Spring 14 percent protein off 11 to 9.45. Live cattle closed lower on Friday as traders prepared for the after market release of Cattle on Feed report. USDA analyst Shayle Shagam says there are 11.8 million cattle in feed lots, down two percent from last year and that's one reason that all cattle prices are high. SHAGAM "The fed cattle prices are running about 91 dollars, the low 90'.s We probably anticipate that it will stay that way through the 4th quarter and probably in the low 90's through most of 2008." That's 91 dollars per hundredweight this year compared to about 86.50 at this time a year ago. December live cattle down .20 to 95.30 January feeders off .20 to 109.12. December Class III milk 19.55 up .39.