05/24/05 Big rally in wheat futures

Marketline May 24, 2005 Both wheat and corn futures posted some big gains Monday and Vic Lespinasse of A.G. Edwards at the Chicago Board of Trade explains why. Lespinasse: "Weather worries were behind the big gains, but also the funds were huge buyers. They bought maybe 40-thousand or so in the corn covering shorts. They also bought maybe 15-thousand or more in the wheat, also covering shorts." It was the hot, dry weather in Kansas and Oklahoma over the weekend that excited traders and dryness also continues in eastern Australia, and in parts of the northern plains of China. After the close USDA issued its weekly crop ratings showing a several point decline in the national winter wheat ratings, about as traders were expecting. Kansas alone showed a ten percent drop in the good to excellent category from last week. On Monday Chicago July wheat was up 20 3/4 cents at 3-33 3/4. July corn up 11 1/4 at 2-24 ½. The futures action helped Portland cash white wheat to move four to five cents higher at mostly 3-93. New crop August higher at 3-79. Club wheat 3-98. PNW HRW 11.5 percent protein higher at 4-22. Dark northern spring 14% protein higher at 5-14. Export barley 104 dollars a ton. The Plains fed cattle trade was quiet Monday. Boxed beef was called weak. Friday's negative cattle on feed report along with sharply higher corn futures were cited as factors behind sharp losses in cattle futures. June live cattle down 102 at 84-60. Aug feeders down 112 at 110-42. June Class III milk down 29 cents at 13-55. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.