02/23/05 Big fund rally in wheat futures

02/23/05 Big fund rally in wheat futures

Marketline February 23, 2005 Wheat futures posted double digit gains Tuesday as gains in soybeans spilled over and sparked fund buying in wheat. It's dry weather in Brazil that's behind the soybean market. Wheat also saw a good weekly export inspections report and Gary Hofer of Gary Hofer Commodities, notes the dollar was down yesterday as well. Hofer: "In the end wheat supply and demand balances are not suddenly tighter. Exports re not likely to dramatically increase as the result of a rally, but this apparently technically driven price run is not to be denied. Charts show a new up trend, though we may need confirmation. We may be in for quite a show as most of the trade has been leaning the other way for some time." On Tuesday Chicago March wheat was up 16 ½ cents at 3-12 ½. March corn up 7 ½ at 2-07 ½. Portland cash white wheat four to six cents higher at mostly 3-96 as higher futures helped bids but there was also an increase in country selling limiting gains. New crop August white wheat higher at 3-77. Club wheat 4-01. PNW HRW 11.5 percent protein 20 cents higher at 4-37. Dark northern spring 14% protein up 13 to 15 cents at 5-05. Export barley 104 dollars a ton. The Plains fed cattle trade was mostly quiet. Boxed beef was lower on choice, steady on select. Cattle futures were mixed despite the friendly Cattle on Feed report with shifting to new contract months and spreading being the focus of traders. April live cattle up a dime at 85-55. March feeders up 20 at 98-50. March Class III milk up 29 cents at 13-95. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.
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