05/12/05 Major report day for market

Marketline May 12, 2005 Rain was back in the forecast for the Plains and Midwest and also for dry areas in Australia so wheat futures were lower Wednesday. But, today USDA issues U.S. winter wheat production and world wheat production estimates. Gary Hofer of Gary Hofer Commodities, says the trade is looking for a U.S. number of 1.55 billion bushels. Hofer: "That's 57 million bushels larger than last year's crop. White wheat production is expected by the trade to show a slight increase from last year from 263 million up to 269. Every government report contains the potential for a surprise as the wheat market will move quickly if the trade's estimates are off the mark either way. If the report proves to be a non-shock, we will return to the weather watch." On Wednesday Chicago July wheat was down 7 3/4 cents at 3-13 3/4. July corn down 1 3/4 at 2-06 ½. Portland cash white wheat trended one to two cents lower but mostly 3-95. New crop August 3-74. Club wheat $4. PNW HRW 11.5 percent protein lower at $4. Dark northern spring 14% protein lower at 4-92. Export barley 104 dollars a ton. At auction this week 400-500 pounds steers were 135 to 137 at Jerome, Idaho, with seven to eight weights 105 to 115. No trend on Plains fed cattle. Boxed beef was down sharply again. More new cattle future highs yesterday. Some analysts warn that if court action next month results in a quick reopening of the border with Canada feeder prices will take a hit. June live cattle up 35 cents at 86-45. Aug feeders up 55 at 111-37. June Class III milk up three cents at 13-30. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.