10/12/05 Feeder futures at all-time highs

10/12/05 Feeder futures at all-time highs

Marketline October 12, 2005 Live cattle futures were mixed Tuesday with profit taking a factor but feeder contracts continued to post new highs and at least unofficially the October contract at 118-70 tied the all-time high set in August of 2004. Alan Brugler of Brugler Marketing and Management in Omaha doesn't expect these feeder prices in cash or futures to last. Brugler: "First of all you will get more movement which tends to put more pressure on the market. You also will at some point cross the dividing line that makes it economical to bring more cattle in from Canada. That hasn't really happened. The market had been expecting it and I think that is one of the reason's for run up is that with the high fuel costs and the other regulatory requirements for bringing those cattle in, we just haven't seen a lot of cattle move in since the border reopened back in July. Of course the other aspect is that at this price level it is very difficult for the feedlot to show a breakeven on these cattle." On Tuesday December live cattle were down three cents at 91-38. Nov feeders were up 60 at 117. Nov Class III milk up nine cents at 13-70. Wheat futures ended slightly higher Tuesday as traders anticipate a reduction in U.S. wheat carryout in a USDA report due out this morning. December Chicago wheat was up three cents at 3-42 3/4. December corn up a half cent at 2-02 ½. Portland cash white wheat steady at mostly 3-60. Club wheat $4. PNW HRW 11.5 percent protein unchanged at 4-66. Dark northern spring 14% protein up two cents at 5-30. Export barley 104 dollars a ton. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.
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