03/21/05 A market of doubt

03/21/05 A market of doubt

Marketline March 21, 2005 Wheat futures closed lower Friday giving back the previous session's gains and then some. Gary Hofer of Gary Hofer Commodities, says there is a contrast between the bearish fundamentals of wheat and the movement of investment money into the market. Hofer: "Friday's trade was set in the context of a rise in the short term U.S. dollar index and a setback in the Commodity Research Bureau Index. Soybeans and corn both dropped off as well. For white wheat growers the whole crazy story has been mostly peripheral as white wheat prices in the Pacific Northwest have virtually ignored the hot markets in Chicago and elsewhere. The premium paid by global buyers for white wheat has eroded back to the low 30-cent a bushel range from a dollar or more just weeks ago. The trend line for wheat is still up, but there is a distinct hint that things are about to shift." On Friday Chicago May wheat was down a dime at 3-56 ½. May corn down 3 3/4 at 2-19 3/4. Portland cash white wheat was one to two cents lower at mostly 3-95. New crop August lower at 3-97. Club wheat $4. PNW HRW 11.5 percent protein lower at 4-34. Dark northern spring 14% protein lower at 5-08. Export barley 101 dollars a ton. Friday's Cattle on Feed Report pegged the feedlot inventory as of March 1st up two percent from a year ago. Placements were down six percent, viewed as friendly, and marketings were down four percent, considered bearish. Cattle futures were lower ahead of the report, in part on a lower fed cattle market. They traded at mostly 90 dollars Friday. April live cattle futures were down 107 at 87-40. April feeders down a dollar at 103-42. April Class III milk up 11 cents at 14-01. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.
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