09/22/05 Short covering in wheat futures

Marketline September 22, 2005 A late short covering rally in Chicago helped wheat futures close higher Wednesday. Traders say gains were limited due to concerns about the impact of Hurricane Rita on hard red winter wheat shipments out of the Gulf. Railroads have imposed traffic embargoes in areas of Texas in anticipation of the hurricane. Brian Hoops of Midwest Market Solutions thinks we'll continue to see wheat rally near term. Hoops: "The reasons for wheat are a little bit better export demand and seasonal tendencies for wheat to move higher. Of course with the Ramadan Holiday coming up the first part of November, Egypt should be in buying in the next six weeks or so." There was also market talk that Pakistan may have purchased 300-thousand tons of wheat and was looking for another 100-thousand tons. Argentina pegs its wheat acreage down 20 percent from last year due to dry conditions and rising input costs. On Wednesday December Chicago wheat was up four cents at 3-25 1/4. December corn down a 1/4 at 2-06 ½. Portland cash white wheat steady to a penny higher at mostly 3-48. Club wheat 3-68. PNW HRW 11.5 percent protein higher at 4-45. Dark northern spring 14% protein higher at 5-05. Export barley 105 dollars a ton. Cattle futures were lower Wednesday as traders await developments in the cash fed market. Selling pressure was attributed to a slightly lower slaughter pace this week and concerns that Hurricane Rita will disrupt beef movement in the Gulf Coast region. Oct live cattle down 18 cents at 85-65. Oct feeders down 38 at 112-58. Oct Class III milk down 11 cents at 14-42. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.