05/26/05 Aussie crop estimate not bullish

Marketline May 26, 2005 And early rally fizzled Wednesday and wheat futures closed lower. Rains across the dry Southern Plains were again a negative. Traders have been watching dryness in eastern Australia but the Australian Wheat Board estimated new crop production at 21 to 23 million metric tons, which would still be above this past year's production. That crop is just doing in the ground though. Gary Hofer of Gary Hofer Commodities, says there are other price negative factors.. Hofer: "Including a decline in projected Chinese wheat imports, a healthy soft red winter wheat crop, despite smaller acreage planted last fall, a strong start for spring wheat with good moisture, and a rapidly approaching winter wheat harvest. The short term trendline is clearly upward but there is as good deal of skepticism among market observers." On Wednesday Chicago July wheat was down 1 3/4 cents at 3-30 1/4. July corn up 1 ½ at 2-22 3/4. Portland cash white wheat mixed at mostly 3-92. New crop August 3-80. Club wheat 3-95. PNW HRW 11.5 percent protein 4-12. Dark northern spring 14% protein 5-09. Export barley 104 dollars a ton. At auction this week 500-600 pound steers were 127 to 129 at Klamath Falls, seven to eight weight steers 99 to 124. Fed cattle trading began late Wednesday in the southern Plains with most sales at 87 dollars, two dollars lower than last week. Boxed beef was weak. Live cattle futures were higher, feeders were lower pressured by higher corn. June live cattle up 15 at 84-60. Aug feeders down 25 at 110-80. June Class III milk up a dime at 13-65. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.