12/10/07 Traders await USDA supply and demand report

Market Line December 10, 2007 USDA issues a new supply and demand report for wheat tomorrow morning and futures traders are anticipating another possible reduction in U.S. ending stocks. Friday saw wheat futures close limit up. Brian Hoops of Midwest Market Solutions in Yankton, South Dakota sums up what that did. Hoops: "We had contract highs in Minneapolis and at all three wheat exchanges in the new crop contracts." Some commentators said the rally was mainly due to massive short covering by funds and small speculators. There was news that Egypt purchased 115-thousand tons of Russian wheat. Hoops says Egypt may be back in the market this week. Also India says it may buy up to 550-thousand metric tons of wheat in a tender today. That's more than previously thought. On Friday Chicago March wheat was up 30 at 9-21 ½. July new crop at Chicago up 30 at 8-08. March corn up 5 ¼ at 4-17 ¼. Despite the limit up wheat futures Portland cash soft white wheat and club wheat were steady Friday at mostly 11-90. Hard red winter wheat bids are for January with 11.5 percent protein at mostly 10-55. Dark northern spring 14 percent at mostly 11-33. Barley at the coast 250-256 dollars a ton. Live cattle futures were higher Friday on short covering. Feeder contracts were down with higher corn cited as a factor. Traders will be checking today to see what kind of cash fed cattle action took place after the close Friday. Feb live cattle up 57 cents at 96-75. Jan feeders down 40 at 105-95. Jan Class III milk down eight cents at 18-41. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.