01/08/08 Wheat down on fund rebalancing

On Monday Chicago March wheat was down 28 ½ at 9.03. Minneapolis and Kansas City March both lost 30 cents on Monday. Joe Victor at Allendale and Associates says those drops were expected. VICTOR "Funds expected to be rebalancing positions. They were expected to start beginning Tuesday. They may have started a day early here." Corn and wheat usage was running at record levels last fall, according Allendale with estimates ahead of this Friday's slew of USDA reports. The reports are expected to indicate a record quarterly corn usage and the largest second-quarter wheat use since 1984-85. Victor says its mostly about exports with sales and shipments both running very strong. March corn off ½ at 4.66 ¼. Portland cash white and club white both unchanged, mostly 13.10 Pacific Northwest HRW 11.5 percent protein January down 30 to 10.21. Dark Northern Spring 14 percent protein January off 30 to 11.88. Export barley at the coast unchanged at 256/ton. February live cattle up .05 to 94.60 March feeders gained .45 to 103.80. February Class III milk at Chicago lost 75 to close at 18.13.