06/14/05 Cattle futures drop

Marketline June 14, 2005 Cattle futures were sharply lower, though not limit down, in the first trading session since USDA announced a retest with a different test showed positive for BSE of an older downer cow that had previously been declared negative for the disease. Further testing on the sample is being done in England and USDA says it could take up to two weeks to get results. Some analysts believe recent weakness in beef markets and technical factors had a lot to do with Monday's price drop and feeder contracts were further pressured by higher corn prices and dryness in some areas of the cornbelt. Aug live cattle down 178 at 80-35. Aug feeders down 278 at 108-47. July Class III milk up 15 cents at $14. Wheat futures were fractionally mixed at Chicago Monday but higher at Kansas City and Minneapolis. Harvest delays and higher row crops supported wheat. Traders have been watching dryness in eastern Australia and Gary Hofer of Gary Hofer Commodities, says that over the weekend up to an inch of rain fell in those areas. Hofer; "So the decline in Australian wheat production numbers has at least been slowed. In this environment wheat prices in the world are depending on some outside influence from beans and corn for help in rallying. The tone is not really nice at all, but most of the bad news is already in." On Monday Chicago July wheat was up 1/4 cent at 3-13 3/4. July corn up a nickel at 2-15. Portland cash white wheat were mixed but mostly 3-86. New crop August 3-74. Club wheat 3-89. PNW HRW 11.5 percent protein up three at 3-95. Dark northern spring 14% protein higher at 5-10. Export barley 102 dollars a ton. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.