11/29/07 Wheat futures burst higher again

Marketline November 29, 2007 It was a limit up to near limit up close for wheat futures Wednesday. Soft white wheat at Portland soared along with the futures. While there are concerns about the U.S. hard red winter wheat crop in the southern plains, some market observers say this is mainly a short covering rally by small specs and trend-following funds which are massively short the market. Speaking at the Pacific Northwest Grains Conference in Spokane Wednesday, Mike Krueger of the Money Farm of Fargo North Dakota, said running out of soft white wheat could be a reality. Krueger: "New crop prices I think if you look at the wheat thing going on, remember great world wheat crop, we are not going to build supplies all that much. This market is going to be very, very sensitive to what goes on. I think the classes of wheat that are going to be real interesting, durum has already gotten there, your wheat white wheat is next and spring wheat probably third in terms we are going to find out how much wheat is really left out there." On Wednesday March Chicago wheat was up 30 cents at 8-81 3/4 cents. July new crop at Chicago up eight at 7-28. March corn up 3 3/4 at 4-04 ½. Portland cash soft white wheat and club wheat for December 10-20 cents higher at mostly 10-80. No hard red winter wheat bids at Portland. Dark northern spring 14% protein for December at 10-56. Export barley 253 dollars a ton. Cattle futures closed lower Wednesday. News that some cash fed cattle sold at only steady to even slightly lower money was bearish despite stronger boxed beef. Analysts say the market is trying to price potentially larger supplies as early as the end of the year. Feb live cattle down 90 cents at 97-05. Jan feeders down a dollar at 109-57. Jan Class III milk down a dime at 18-38. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.