12/04/07 Wheat futures overbought; cattle oversold

Market Line December 4, 2007 Wheat futures started December closing lower Monday. There was commentary that the recent frost in Argentina may have hurt the corn crop there too and that prompted some liquidation of long wheat/short corn spreads. Brian Hoops of Midwest Market Solutions in Yankton, South Dakota, says Monday was a technical correction after the past two week rally. Hoops: "Bearish traders have been blown out of their shorts fueling the rally. Fundamental support has come from drier than desired weather in the winter wheat states but the big news I think is the funds getting out of their short positions and they sold two-thousand contracts on the day. We could have pretty good correction before we move higher into mid-January." Weekly export inspections for wheat came in at 17 million bushels which compared to trade expectations of from 16-22 million. On Monday Chicago March wheat was down 8 ¾ cents at 8-76 ¾. July new crop at Chicago down a nickel at 7-57. March corn up two at 4-03 ½. Portland cash soft white wheat and club wheat was down a nickel to up a dime at mostly 11-05. HRW 11.5 percent protein down seven cents at 9-86. Dark northern spring wheat 14% protein down seven at 10-64. Portland barley for January at 251 dollars a ton. Cattle futures were higher Monday with live contracts leading the way on a short covering rally. Feeders followed despite higher corn. Feb live cattle up 60 cents at 96-37. Jan feeders up 35 at 108-05. Jan Class III milk up 56 cents at 18-75. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.