04/11/05 Waiting for a weather rally

Marketline April 11, 2005 USDA's numbers for wheat last Friday were generally described as neutral but they were somewhat bearish for corns and soybeans and the weakness in commodities overall took wheat futures lower too. USDA did trim U.S. wheat ending stocks down to 541 million bushels. World supplies were increased a little. Gary Hofer of Gary Hofer Commodities, says red wheat versus soft white wheat growers face different markets. Hofer: "From this point holding on to red wheat positions in hopes of returns to earlier highs 40 to 50-cents above present levels seems less than rational. For white wheat producers the incentive to take marketing action is absent with little in the way of a trend to stimulate movement. Traders are turning to the options for help for the red wheats and many are turning away from the marketing table all together. One thing is certain. Something will change eventually. For now, we will look for a low point coming along in red wheat from which to begin a weather rally." On Friday Chicago May wheat was down 4 1/4 cents at 3-10. May corn down 1 ½ at 2-04. Portland cash white wheat steady to a penny lower at mostly 3-92. New crop August 3-75. Club wheat 3-96. PNW HRW 11.5 percent protein lower at $4. Dark northern spring 14% protein lower at 4-68. Export barley 102 dollars a ton. Plains fed cattle sold last Friday at mostly 90 dollars, two dollars lower than the previous week. Boxed beef was weak. Futures traders liked the cash fed prices and trading bulls are looking ahead to the barbecue season. June live cattle were up 30 cents at 83-72. May feeders up 87 at 104-80. May Class III milk up two cents at 14-27. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.