12/12/07 Wheat futures lower despite friendly USDA report

Market Line December 12, 2007 USDA's supply and demand report Tuesday was friendly for wheat with a U.S. wheat ending stocks number of 280 million bushels, the lowest in 60 years. Still, wheat futures closed lower in what some commentators said was buy the rumor sell the fact trading. Joe Victor of Allendale Incorporated says the market is also aware of moisture moving through the plains and Midwest wheat belts. Victor: "Essentially adding a little bit of moisture to the soils is good, but again we feel that with the crop quality condition going into dormancy as tough as they did, it is going to be awful hard to revive itself in the spring of 2008." On Tuesday Chicago March wheat was down 19 cents at 9-10 ½. July new crop at Chicago down 18 ½ at 8-06. March corn up 6 ¼ cents at 4-24. Despite the lower futures Portland cash soft white wheat and club wheat were up a dime at mostly 12-15. HRW 11.5 percent protein for January down a dime at mostly 10-57. Dark northern spring wheat 14% protein for January nine to 11-cents lower at mostly 11-37. Barley at the coast 256 dollars a ton. Live cattle futures were mostly higher Tuesday with feeders slightly lower. A Plains winter storm and higher boxed beef were cited as positive fundamental news. Feb live cattle up 12 cents at 97-25. Jan feeders down 15 at 105-97. Jan Class III milk down two cents at 18-50. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.