12/19/05 Entering holiday trading mode

12/19/05 Entering holiday trading mode

Marketline December 19, 2005 Wheat futures were mostly higher Friday posting generally fractional gains. Funds were light buyers. Temperature forecasts for this week in the southern Plains hard red wheat belt are not as severe as previously predicted. Argentina reported its wheat harvest was 45 percent complete as of last Thursday. Futures trading will close early this Friday and exchanges will be closed Monday the 26th. Joe Victor of Allendale says we're in the holiday trading mode now. Victor: "You are looking at markets that are definitely getting thinner and with the thinness comes increased volatility and with that increased volatility comes some pretty explosive situations." In other words, big moves can be made on thin volume. On Friday March Chicago wheat was up a penny at 3-19 3/4. March corn up 2 3/4 at 2-07 ½. Portland cash white wheat down a penny at 3-45. Club wheat 3-93. PNW HRW 11.5 percent protein mixed at 4-56. Dark northern spring 14% protein 5-04. No Portland bids on barley. Cattle futures could see thin volume this week too. Contracts were higher Friday with some new highs on short covering, fund buying and spreading. Feb live cattle up 88 cents at 97-08. Jan feeders up 50 at 114-33. Jan Class III milk up three cents at 13-15. USDA reported Friday afternoon that milk production in November was up 4.6% over November of 2004. Also Friday USDA reported potato stocks as of December 1st were down 10% from a year ago in Idaho, up 12% in Oregon and up four percent in Washington. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.
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