09/14/05 Solid gains for wheat futures

Marketline September 14, 2005 Wheat futures were higher Tuesday led by Minneapolis which saw some double digit gains. USDA reported Monday that 96 percent of the U.S. spring wheat harvest was done ending harvest pressure on the Minneapolis spring wheat contracts. There were also some references made to potential quality losses in Canada due to recent heavy rains. Peter Georgantones of Investment Trading Services in Bloomington, Minnesota, says buying Minneapolis and shorting Chicago is a popular spread right now. So is long Kansas City, short Chicago. Georgantones: "Everybody is short wheat up to their eyeballs already. So you know, harvest is through. The report certainly wasn't bearish to wheat though it was somewhat bearish to corn although I think a good chunk of that was priced in already. So I think you are starting to see some short covering. I think it is mostly spreading against other wheats and short covering." On Tuesday December Chicago wheat was up three cents at 3-29 ½. December corn down 1 ½ at 2-10. Portland cash white wheat one to three cents higher at mostly 3-45. Club wheat mostly 3-60. PNW HRW 11.5 percent protein higher at mostly 4-48. Dark northern spring 14% protein higher at 4-98. Export barley 104 dollars a ton. Cattle futures were lower Tuesday. Profit taking was cited despite the positive tone in the cash market. But speculative longs were anxious to take profits on signs of a near-term top in the futures. Oct live cattle down 32 cents at 85-30. Oct feeders down 75 at 113-13. Oct Class III milk down 19 cents at 14-29. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.