09/09/05 Iraqi buy helps wheat futures

Marketline September 9, 2005 Barring the unexpected grain futures trading is expected to be slow today as the market awaits USDA monthly reports due out Monday. Traders expect just minor changes in wheat supply and demand numbers. Wheat futures shrugged off weakness in corn and soybeans Thursday to bounce higher. Mark Chiodo of Slipka Commodities at the Minneapolis Grain Exchange says fund short covering was a factor and attributed to news about Iraq. Chiodo: "Talking about the Iraqi Grain Board official confirming that they agreed to purchase about 600-thousand tons of hard wheat from the U.S. and 650-thousand tons from the Australian Wheat Board. So funds were pretty good buyers in the wheat and that's what boosted them up." At least for now, Chiodo says the market seems less concerned about the transportation issues associated with Hurricane Katrina and shipping on the Mississippi and out the Gulf. On Thursday December Chicago wheat was up 4 3/4 cents at 3-23 ½. December corn down 1 1/4 at 2-16 1/4. Portland cash white wheat one to two cents higher at mostly 3-39. Club wheat 3-50. PNW HRW 11.5 percent protein higher at 4-28. Dark northern spring 14% protein higher at 4-84. Export barley 105 dollars a ton. Cattle futures were higher Thursday with many feeder contracts hitting new highs. Traders belief beef demand is holding up well in the wake of Hurricane Katrina and feeder cattle supplies are tight. Oct live cattle up 53 cents at 83-45. Oct feeders up 172 at 112-15. Oct Class III milk up eight cents at 14-34. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.