06/08/05 Australia slashes wheat forecast

Marketline June 8, 2005 Wheat futures were lower again Tuesday on harvest pressure and favorable spring wheat crop conditions. Gary Hofer of Gary Hofer Commodities, says harvest is likely to override most other factors for awhile, even a big cut in the forecast for Australian wheat production. Hofer: "Soybeans may be able to help sympathetically but will require rust disease damage or extra weather problems to make much headway. On the positive side Australian wheat crop projections are shrinking, now only 16 million tons for the year compared to earlier ideas around 22 million. But that is a planting problem and not really a current factor for the market to solve. The price of wheat is near important technical support levels at Chicago and has already broken through some. A test of old lows seems a good coin toss away. The short term trend is down." On Tuesday Chicago July wheat was down 3 1/4 cents at 3-19 1/4. July corn down ½ at 2-20 1/4. Portland cash white wheat steady at 3-90. New crop August 3-78. Club wheat 3-96. PNW HRW 11.5 percent protein lower at 3-99. Dark northern spring 14% protein lower at 4-99. Export barley 102 dollars a ton. Cattle futures were mixed Tuesday with live contracts lower and feeders higher. Continuing weakness in the hog market and ideas that cash cattle will work seasonally lower into summer pressured live contracts. Aug live cattle down 15 cents at 83-43. Aug feeders up 28 at 113-53. July Class III milk down 17 cents at 14-23. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.