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At mid-day, CBOT wheat trades limit down

At mid-day, the CBOT Dec wheat futures contract is trading limit down.

Jason Ward, Northstar Commodity Investment Co. says the sharply lower trading is based on rumors of wheat cargoes being switched from US origin to Russia because of cheaper freight rates, delivered into Africa.

"The rumor was that 400,000 MMT (15 million bushels) that was previously booked from the US was going to be switched to Russia. This news on top of some negative technical action in wheat last week has this market trading limit down (30 cents) here today," Ward says.

That negativity in wheat spilled over to the corn and soybeans, Ward says. The corn found some export business here this morning with Israel buying just over 2 million bushels, but it still is trading lower by 5 cents.

"Soybeans are quite simply a weather market right now with all eyes focusing on central and northern Brazil. 65% of Brazil remains too dry to plant soybeans and we are in the ideal time frame to plant those soybeans," Ward says.

There is some rain in the forecast for later this week, along with the negativity in wheat that has put some pressure on the soybeans here today, he says.

The following are Ward's key technical levels to consider for support.
December 2007 corn $3.35, if that holds a rally back to $3.58 is possible.
December 2008, $3.91, if we break $3.91 a setback to $3.75 is possible.

November 2007 soybeans support
$9.34, closing below that opens the door for a test of $8.87.

At mid-day, the CBOT Dec wheat futures contract is trading limit down.

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