02/28/05 Trading funds go long wheat

Marketline February 28, 2005 Wheat futures posted strong gains Friday as the funds were aggressive buyers and traders say the funds are now net long wheat. Concerns continue about dry weather in Brazil which helps soybeans, which in turn has helped wheat. Many traders are saying however, that wheat is now overpriced and that the fundamentals for wheat are still bearish. Gary Hofer of Gary Hofer Commodities, assesses where the market stands now. Hofer: The trendline is still upward for wheat but there are many analysts a fair pull-back from whatever inflamed highs we may see. The trading funds balance sheets have tipped into positive time for the first time since last summer. This may be a good time to work on some wheat marketing decisions for new crop. There are no sell signals yet, but you should have your selling shoes on." On Friday Chicago May wheat was up 12 cents at 3-33 1/4. May corn up 5 3/4 at 2-11 ½. Portland cash white wheat steady to a penny higher at mostly 3-94. New crop August white wheat higher at 3-82. Club wheat 3-99. PNW HRW 11.5 percent protein up a dime at 4-37. Dark northern spring 14% protein higher at 5-07. Export barley 106 dollars a ton. USDA issued its assessment Friday of Canada's ruminant to ruminant feed ban saying the assessment affirms the department's decision to begin lifting the ban on live cattle and beef. Plains fed cattle sold Friday at dollar lower than the previous week at mostly 87-dollars. Boxed beef was firm. Cattle futures started a late comeback but still closed lower. April live cattle down 17 cents at 86-10. April feeders down 52 at 97-62. April Class III milk up 47 cents at 15-48. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.