06/02/05 Technicals and dollar pressure wheat

Marketline June 2, 2005 U.S. Wheat futures were mostly lower Wednesday. Rains in the Plains offset a further decline in winter wheat ratings reported late Tuesday. Gary Hofer of Gary Hofer Commodities notes that ratings in Idaho and Washington improved from last week and as for the crop condition nationally; Hofer: "The bottom line is that even with the sharp drop in crop strength the U.S. wheat crop is in better shape than last year at this time portending at least trend line yields. With the U.S. dollar at new 7-8 month highs in the global markets wheat lacks the inspiration story to drive a sustained rally. Seems likely that wheat prices will drift lower into harvest, not withstanding the big jump in soybeans and corn everyone is talking about." On Wednesday Chicago July wheat was down a 1/4 cent at 3-31 ½. July corn up 2 ½ at 2-24 ½. Portland cash white wheat steady for first half June at mostly 3-93. New crop August 3-82. Club wheat 3-96. PNW HRW 11.5 percent protein lower at 4-12. Dark northern spring 14% protein lower at 5-12. Export barley 102 dollars a ton. Live cattle futures were sharply lower Wednesday. Weakness in boxed beef cutout values and a steep mid-morning break in lean hog futures sparked enough selling to drop futures below chart support. Beef prices are in the midst of a seasonal slide and analysts expect cattle weights and slaughter rates to pick up. Aug live cattle down 115 at 83-55. Aug feeders down 88 at 111-80. July Class III milk up 22 cents at 14-24. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.