04/20/05 Index funds buy grains again

Marketline April 20, 2005 Wheat futures posted gains Tuesday. There wasn't really any new fundamental news but grains got the benefit of index fund buying related to the CRB index. Mark Chiodo of Slipka Commodities at the Minneapolis Grain Exchange, says the buying could continue today. Chiodo: "And if so they should run us up to the upper end of what's been our trading range the last two or three months, since February anyway. We'll see how much selling shows up at that point. I would think that we'd spark a little more cash sales from the farm sector to pose some hedge pressure there and certainly will close down any export business we've got going on because the prices will be too high." On Tuesday Chicago May wheat was up 6 1/4 cents at 3-08. May corn up 5 1/4 at 2-09 ½. Portland cash white wheat mixed at mostly 3-90. New crop August white wheat 3-72. Club wheat 3-95. PNW HRW 11.5 percent protein higher at $4. Dark northern spring 14% protein higher at 4-83. Barley delivered to inland feeding areas 99 dollars a ton. At auction this week 500-600 pound steers were 122 to 131 at Davenport, Washington, with six to seven weight steers 118 to 123.50. The Plains fed cattle trade remained quiet. Boxed beef was higher on fairly good demand. Cattle futures were generally higher with strengthening beef prices along with positive chart factors cited. June live cattle up 85 cents at 85-40. May feeders up 20 at 107-52. May Class III milk up 16 cents at 14-06. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.