05/02/05 Weather and the Yuan

05/02/05 Weather and the Yuan

Marketline May 2, 2005 Wheat futures were mostly lower at Chicago Friday but up at Kansas City and Minneapolis. Chicago had been higher too but funds bailed out late with end of month position squaring cited as a factor. Traders were watching the potential for some cold temperatures in the Plains over the weekend and dry weather in China is getting more attention. Gary Hofer of Gary Hofer Commodities, says a possible re-evaluation of the Chinese Yuan is also on traders' radar. Hofer: "If it happens as some observers are expecting it could be a positive push for wheat. There are reasons to believe that a stronger Yuan, the Chinese currency unit, would slow Chinese grain sales into world markets and increase their buying power at some point making larger wheat sales to that country more likely. In the short run it makes good market gossip." On Friday Chicago July wheat was down 1 1/4 cents at 3-26. July corn up a half at 2-13 ½. Portland cash white wheat steady to a penny higher at mostly 3-96. New crop August 3-79. Club wheat $4. PNW HRW 11.5 percent protein 4-17. Dark northern spring 14% protein 5-05. Barley delivered to inland feeding areas 99 dollars a ton. Plains fed cattle sold Friday at 93 dollars, a dollar lower than the previous week. Boxed beef was called firm. Live cattle contracts were higher with feeders mixed. There was a lot of contract rolling in the live pit from June to August. June live cattle up two cents at 85-62. Aug feeders down a nickel at 108-10. June Class III milk up a dime at 13-40. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.
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