12/07/05 Fund selling in wheat

Marketline December 7, 2005 Wheat futures were lower Tuesday on heavy funding selling in a technical setback to a firm close Monday. Even the potential of a 200-thousand ton Iraqi purchase of U.S. wheat didn't help. After the close Egypt announced a tender for 50-60 thousand tons of wheat for second half January shipment. Stat's Canada issues a crop production report today. Meanwhile, USDA meteorologist Brad Rippey says the southern Plains winter wheat crop is in dire shape because of lack of moisture and there is no relief in sight. Rippey: "There is a storm system developing later this week but it looks like all the moisture from that system is going to fall north across the central and northern Plains and then east across the eastern parts of Texas on to the East Coast. So, no real relief for key wheat areas of Oklahoma or Texas. Beyond that it doesn't look like a great deal of relief on out through about the 19th of December." On Tuesday March Chicago wheat was down 4 ½ cents at 3-15 3/4. March corn down 2 ½ at 2-04 1/4. Portland cash white wheat steady at 3-43. Club wheat 3-88. PNW HRW 11.5 percent protein lower at 4-53. Dark northern spring 14% protein lower at 5-11. Again no bids on barley at Portland. Cattle futures were lower Tuesday. Traders see lower cash prices for both and fed and feeder cattle this week. Technical factors were also at play in the futures market. Feb live cattle down 27 cents at 95-47. Jan feeders down 105 at 115-33. Jan Class III milk up four cents at 12-97. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.