01/05/05 Technical meltdown in wheat

Marketline January 5, 2005 Wheat futures continued their new year slide to the downside Tuesday with new contract lows set at all three exchanges, though prices settled above the daily lows. Funds were large sellers. There was general pressure on the commodities again and the dollar was higher. Much of the winter wheat belt is getting moisture. Argentina's major wheat customer is Brazil but this year Argentine sales to Egypt are larger. Egypt of course is normally the major buyer of U.S. wheat. After trading closed Tuesday the USDA announced it was purchasing 100-thousand tons of soft white wheat for donation to Sudan for February-March shipment. Gary Hofer of Gary Hofer Commodities, says On Tuesday Chicago March wheat was down 6 1/4 cents at 2-96. March corn down 3/4 at 2-01. Portland cash white wheat down four cents at 3-84. Club wheat 3-89. PNW HRW 11.5 percent protein unchanged to lower at 4-31. Dark northern spring 14% protein mixed at mostly 5-16. Export barley 97 dollars a ton. At auction this week 500-600 pound steers were 113 at Davenport, Washington. The Plains fed cattle trade was quiet. Boxed beef was weak to lower on light to moderate demand and offerings. A major ice and snow storm for the Plains feeding states proved positive for cattle futures which posted strong gains. February live cattle up 207 at 90-47. March feeders up 290 at 99-45. February Class III milk up seven cents at 13-89. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.