01/04/06 A turn around Wednesday?

Marketline January 4, 2006 Wheat futures started 2006 off on a positive note with contracts closing a few cents higher. Market observers say fund and commodity index fund buying was a factor yesterday. USDA's report on export inspections for wheat was far below trade expectations at just under 10 million bushels. But Brian Hoops of Midwest Market Solutions in South Dakota, says dryness in the southern Plains continues to provide fundamental support. Hoops: "Kansas City new crop wheat was supported by dry conditions and reports of grass and prairie fires because of the dry conditions and that helped support a rally in new crop wheat. In fact March Kansas City went to the $3.94 high we made back in October before backing off on some profit taking." Hoops thinks we might see a turn around today on a technical setback. March Chicago wheat was up 6 ¾ cents at 3-46. March corn up 4 ¼ at 2-20. Portland cash white wheat two cents higher at mostly 3-49. Club wheat 3-94. PNW HRW 11.5 percent protein higher at 4-66. Dark northern spring 14% protein higher at 5-22. Export barley 101 dollars a ton. Cattle futures were steady to lower Tuesday. There was a lot of action in options. Commodity funds are holding large long positions after standing their ground last week rather than taking profits before the year end. Feb live cattle unchanged at 96-38. March feeders down 72 cents at 114. Feb Class III milk up 26 cents at 13-17. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.