03/08/05 China may need less wheat

Marketline March 8, 2005 Wheat futures were lower Monday in a lightly traded market. There were various bearish news items. Egypt took some French wheat in its most recent tender which also pressured white wheat at Portland. A Chinese official told a press conference that China would need fewer wheat imports this year as the country's wheat stocks are enough to cover China's production shortfall. And Gary Hofer of Gary Hofer Commodities, says the weekly export inspections report wasn't good. Hofer: "There is a general awareness that wheat prices may have pushed above where actual supply and demand would balance mostly on the energy created by heavy managed money fund trading and positive bean prices. Spring weather will be increasingly important but for now we have to watch the beans, which were down Monday and appear to be headed down for the moment. Short term is upward but in doubt." On Monday Chicago May wheat was down 4 3/4 cents at 3-32 1/4. May corn down 3 3/4 at 2-13 1/4. Portland cash white wheat one to two cents lower at mostly 3-95. New crop August white wheat 3-85. Club wheat $4. PNW HRW 11.5 percent protein lower at 4-23. Dark northern spring 14% protein lower at 4-93. Export barley 107.50 a ton. A U.S. District Court judge has denied the petition from a group representing U.S. meat packers seeking to force the USDA to lift its ban on Canadian live cattle 30 months of age and older. Meanwhile the Plains fed cattle trade was quiet Monday. Boxed beef climbed over three-dollars a hundredweight. Cattle futures were mostly higher however April live cattle were down 12 cents at 88-90. April feeders up 62 at 102-30. April Class III milk down 16 cents at 14-05. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.