01/21/05 E.U. action rattles wheat market

01/21/05 E.U. action rattles wheat market

Marketline January 21, 2005 Wheat futures were mostly lower Thursday with Chicago March wheat setting a new contract low. With little other fundamental news to work with, Gary Hofer of Gary Hofer Commodities, says news that the E.U. began issuing refunds for wheat exports rattled the market. Hofer says E.U. wheat will be even more price competitive in an already vicious market. Hofer: "In the last Egyptian tender for example the French captured a significant portion of the trade without any subsidy. But now they will have an additional edge. The E.U. had been putting off export subsidies for as along as possible as it is quite expensive for them, but also will create quite an outcry among the competition, namely U.S., Canada, Australia and Argentina." On Thursday Chicago March wheat was down 4 1/4 cents at 2-94 3/4. March corn up a penny at 1-97 3/4. Portland cash white wheat steady to a penny higher at mostly 3-90. Club wheat 3-96.PNW HRW 11.5 percent protein lower at 4-40. Dark northern spring 14% protein lower at 5-23. Export barley 96 dollars a ton. At auction this week 400-500 pounds steers were 125 to 136 at Madras, Oregon, 118 to 152 at Idaho Falls. Seven to eight weight steers 95 to 97 at Madras, 97 to 104 at Idaho Falls. The Plains fed cattle trade was quiet. Boxed beef was lower. Cattle futures were mixed as traders awaited developments in the cash fed market this week. February live cattle up 17 cents at 89-52. March feeders down a dime at 100-82. February Class III milk down 15 cents at 16-05. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.
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