12/29/05 Funds continue short covering wheat

Marketline December 29, 2005 The funds continue to cover their massive short positions in wheat and once again wheat futures closed higher Wednesday. There was some talk that Egypt and Iraq may soon be in the market for wheat. And there is still not much relief in sight for the winter wheat in the dry southern Plains. But Peter Georgantones of Investment Trading Services in Bloomington, Minnesota, says its funds not fundamentals driving the wheat market right now. Georgantones: "The funds have been pulling in their short wheat for about the last two weeks at least. They get so short it is hard for them to stay short coming into the end of the year and they are forced to buy back in their positions. That's what has created this about 30-cent rally here from the end of November here." On Wednesday March Chicago wheat was up 5 ½ cents at 3-45 ½. March corn up 3/4 at 2-16 1/4. Portland cash white wheat a penny higher at mostly 3-48. Club wheat 3-96. PNW HRW 11.5 percent protein unchanged to higher at 4-70. Dark northern spring 14% protein higher at 5-18. No barley bids. Higher boxed beef values had traders thinking cash cattle might be fully steady to higher this week and that helped cattle futures close higher Wednesday. Feb live cattle up 78 cents at 96-55. March feeders up 55 at 114-25. Feb Class III milk up three cents at 12-78. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.