01/04/05 A negative start for wheat

01/04/05 A negative start for wheat

Marketline January 4, 2005 Like many commodities, wheat futures started the first trading session of the new year on the downside with Kansas City contracts posting the sharpest declines. Hard red winter wheat is seeing increased producer selling. Weekly export inspections also showed a drop from the previous week. Gary Hofer of Gary Hofer Commodities, says the complaint of traders is lack of export activity against a stronger dollar index, though the dollar was weaker Monday. Hofer: "While the dollar remains weak it appears that a goodly portion of its potential decline is already built in. Another background factor, the cost of shipping bulk freight has been declining since December 1st. PNW export points continue to see an advantage to Gulf rates helping to preserve white wheat price premiums over other varieties. The general trend for wheat is flat sideways at best. Seasonal tendencies are providing just enough lift to prevent declines, but in the mind of the global wheat buyer there is no reason to rush." On Monday Chicago March wheat was down 5 1/4 cents at 3-02 1/4. March corn down three at 2-01 3/4. Portland cash white wheat was two to three cents lower at mostly 3-88. Club wheat 3-93. PNW HRW 11.5 percent protein unchanged to lower at 4-33. Dark northern spring 14% protein at 5-18. Export barley 93 dollars a ton. The Plains fed cattle trade was quiet. Boxed beef was steady. Cattle futures closed higher even with traders divided on just how USDA's plans to reopen the border with Canada will turn out. February live cattle up 57 cents at 88-40. March feeders up 55 at 96-55. February Class III milk up two cents at 13-82. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.
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