03/09/05 Speculative buying helps futures

03/09/05 Speculative buying helps futures

Marketline March 9, 2005 Wheat futures ended Tuesday strong, bouncing of the day's lows to close higher on fund buying. Some analysts pointed to a drop in the dollar and a rally in the Commodity Bureau Index as the reason for the funds' action. On the fundamental side, although Egypt didn't confirm it, some traders said Egypt bought 60-thousand tons wheat from Australia. But fundamentals aside, Gary Hofer of Gary Hofer Commodities, says it's the funds the market is focused on right now. Hofer: "We as wheat traders and growers must acknowledge the power of the funds to move the market for good or ill. It is not terribly difficult to keep track of that group. Their positions are reported each week by the CFTC. The trend is still higher. Stay on program. Don't abandon marketing plans. There is volatility yet to come." On Tuesday Chicago May wheat was up a nickel at 3-37 1/4. May corn up a penny at 2-14 1/4. Portland cash white wheat steady despite the higher futures at 3-95 on continuing disappointment Egypt took no U.S. soft white wheat in its last tender. August new crop unchanged at 3-85. Club wheat $4. PNW HRW 11.5 percent protein higher at 4-30. Dark northern spring 14% protein higher at 4-99. Export barley lower at 102 dollars a ton. The Plains fed cattle trade remained quiet Tuesday. Boxed beef was sharply higher again for the second straight day as retailers are buying. Cattle futures were higher. April live cattle up 35 cents at 89-25. April feeders up 125 at 103-55. April Class III milk down a nickel at $14. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.
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