12/13/07 Investment funds drive wheat rally

Market Line December 13, 2007 Wheat futures saw numerous limit up closes Wednesday. The sharp recovery in crude oil and higher equities helped to spark aggressive buying. Joe Victor of Allendale Incorporated says it was the investment funds that were doing the buying. Victor: "Don't give all the credit just strictly to wheat but it's tight corn, it's tight wheat, it's tight rice. It is tight global stocks of starches and until that's remedied the investment funds continue to drive this market higher." Even with higher prices countries continue to tender for wheat. Victor notes that Japan, which routinely tenders for 120-135 thousand metric tons of wheat has upped its tender to 200-thousand tons. Egypt purchased some more Russian wheat. Iran, which has been a net wheat importer, has been exporting some wheat according to an Iranian newspaper report. On Wednesday Chicago March wheat was up 30 cents at 9-40 ½. July new crop at Chicago up 22 ½ at 8-28 ½. March corn up 9 ¼ at 4-33 ¼. Portland cash soft white wheat and club wheat were steady to 20 cents higher at mostly 12-20. HRW 11.5 percent protein up 30 cents at 10-87. Dark northern spring wheat 14% protein up 30 at 11-67. Barley at the coast 256 dollars a ton. Cattle futures were lower Wednesday. Heavy deliveries on December contracts were a factor. There was also news that National Beef intends to cut slaughter by 10 to 15-thousand head a week. Feb live cattle down 45 cents at 96-80. Jan feeders down 82 at 105-15. Jan Class III milk down 17 cents at 18-34. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.