12/12/05 USDA numbers bearish wheat

Marketline December 12, 2005 Wheat futures were lower Friday in the wake of a USDA report that left U.S. wheat ending stocks unchanged but increased world wheat production and carryout from estimates last month. Traders had been expecting a slight drop in U.S. wheat ending stocks. USDA also showed bigger crops and exports for Australia and Canada. Mark Chiodo of Slipka Trading at the Minneapolis Grain Exchange sees continued pressure on Chicago wheat contracts, already near contract lows. Chiodo: "I would expect we will drop down and probably make some recent lows at least in Chicago. Folks who tend to play the different pits against each other will probably still be willing to buy Kansas City or buy Minneapolis and sell Chicago against it." Traders do continue to keep an eye on the southern Plains hard red winter wheat crop which lacks moisture and has had some cold temperatures. On Friday March Chicago wheat was down 4 3/4 cents at 3-07 ½. March corn up 2 at 2-03 3/4. Portland cash white wheat a penny lower at mostly 3-40. Club wheat 3-85. PNW HRW 11.5 percent protein lower at 4-46. Dark northern spring 14% protein lower at 5-02. No barley bids. Cattle futures were lower again Friday with some saying it was pessimism about Japan even if the market opens up and others pointing to technical factors. Feb live cattle down 97 cents at 94-53. Jan feeders down a dollar at 113-78. Jan Class III milk down a nickel at 13-09. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.