12/20/07 Wheat exporters and importers adjust to high prices

Market Line December 20, 2007 Wheat futures posted double digit gains Wednesday. One commentary from the Chicago Board of Trade says Japan sent a mini shock wave through the market when it announced it was doubling its budget for wheat imports for next year as it expects current high prices levels to continue into early 2008. South Korea said it is removing import taxes on wheat and other grains to help curb food inflation. Russia said it would not have to impose its next curb on grain exports until February. Ryan Kelbrantz of ADM at the Minneapolis Grain Exchange says the weekly export sales report could give the market direction today; Kelbrantz: "But the amount of concern over tight world stocks should continue to benefit prices as we move into the holidays." On Wednesday Chicago March wheat was up 21 ½ cents at 9-73 ½. July new crop at Chicago up 15 ½ at 7-84 ¾. March corn up 2 ¾ at 4-34 ¾. Portland cash soft white wheat and club wheat was steady to a dime higher at mostly 12-90. HRW 11.5 percent protein for January up 23 cents at 11-10. Dark northern spring wheat 14% protein for January up 27 at 12-26. Barley at the coast 256 dollars a ton. Cattle futures were lower Wednesday. There is positioning ahead of tomorrow's USDA Cattle on Feed report as well as the holidays and nervousness about this week's cash fed cattle trade. Feb live cattle down 40 cents at 96-27. Jan feeders down 95 at 104-20. Jan Class III milk up seven cents at 17-70. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.