01/28/05 New contract lows for wheat

Marketline January 28, 2005 Technical support levels in wheat futures broke Thursday which set off selling and made for new lows in most contracts. Gary Hofer of Gary Hofer Commodities, says the problem for the grains remains abundant supplies, aggressive competition for sales and a strengthening U.S. dollar. Hofer: "If wheat prices are able to rally at all under the current set of variables it is likely to 20 to 30 cents over several days or a week as a result of fund short covering. Otherwise the picture is pretty dark. A few weeks of time passing will help with the seasonal pattern moving past the normal February break period. By then spring weather season will have begun for the Midwest which may make the sellers a little more cautious and give us a chance for a little run up." On Thursday Chicago March wheat was down 5 3/4 cents at 2-89 ½. March corn down three at 1-95 3/4. Portland cash white wheat was one to two cents lower at mostly 3-93. New crop August lower at 3-65. Club wheat 3-99. PNW HRW 11.5 percent protein lower at 4-23. Dark northern spring 14% protein lower at 5-12. Export barley 96 dollars a ton. At auction this week 400-500 pound steers were 125 to 135 at Madras, Oregon, 124 to 130 at Idaho Falls. Seven to eight weight steers were 92 to 97 at Madras, 94 to 99 at Idaho Falls. The southern Plains fed cattle trade remained quiet Thursday. Boxed beef was sharply lower again. Cattle futures were mixed with market bulls thinking USDA will have to pull the rule on Canadian cattle. February live cattle up 12 cents at 89-25. March feeders up two cents at 99-90. February Class III milk up a nickel at 15-35. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.