05/23/05 Dry spots support wheat futures

Marketline May 23, 2005 Wheat futures at Chicago posted gains for last week after closing higher Friday. Traders are still concerned about dry conditions in the U.S. southern Plains and in eastern Australia. After recent rains it has also turned hot and dry in northern China and parts of Russia. Gary Hofer of Gary Hofer Commodities says the PNW crop is doing well overall. Hofer: "So there is actually some threat of downside to the serenity of the Portland market. Harvest is still a long way off but if the market gets the idea that a heavy crop is no longer in doubt, and Chicago fails to hold on to present levels, there is a good chance of weaker soft white wheat prices this year." On Friday Chicago July wheat was up 3 ½ cents at 3-13. July corn up 3 3/4 at 2-13 1/4. Portland cash white wheat steady at mostly 3-90. New crop August 3-72. Club wheat 3-93. PNW HRW 11.5 percent protein higher at 4-02. Dark northern spring 14% protein higher at 4-95. Export barley 104 dollars a ton. Southern Plains cattle sold Friday at 88 to 89 dollars, one to two dollars lower than the previous weak. Boxed beef was weak on choice, higher on select. The Monthly Cattle on Feed Report Friday pegged the feedlot inventory up three percent from a year ago, placements up four percent and marketings down five percent. The report was called neutral to bearish. Ahead of the report cattle futures were generally lower with June live cattle down 20 cents at 85-62. Aug feeders down 77 at 111-55. June Class III milk unchanged at 13-84. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.