12/26/07 Passes on wheat tenders; bearish reaction to Cattle on Feed

Market Line December 26, 2007 With the exception of new crop at Chicago, wheat futures closed lower Monday. Egypt's cancellation of a weekend tender and India letting a tender expire were negative for old crop wheat contracts. New crop at Chicago got support from concerns about freeze/thaw weather for soft red winter wheat. On Monday Chicago March wheat was down 13 ¾ cents at 9-35 ¼. July new crop at Chicago up 2 ½ at 7-92. March corn up a half cent at 4-44. USDA Market News did not report prices for Monday. Portland cash soft white wheat and club wheat last traded steady at mostly $13. HRW 11.5 percent protein for January was at 10-84. Dark northern spring wheat 14% protein January at 12-08. Barley at the coast 256 dollars a ton. Cattle futures were lower Monday reacting to last Friday's bearish USDA Cattle on Feed Report. USDA analyst Shayle Shagum says higher placements in that report indicates a lot of cattle going to market come spring of 2008. While that will put pressure on fed cattle prices Shagum says prices shouldn't tank. Shagum: "There is continued strong demand out there. We expect to see exports continue to build, which will help absorb some the supplies that are on the market. Part of it also reflects that even with that large lump coming out, we are talking about beef production for the year that will probably be averaging a bit lower than this year." On Monday Feb live cattle down 95 cents at 94-57. Jan feeders down 25 at 103-57. Dairy futures did not trade Monday. Jan Class III milk was last at 18-25. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.