06/10/05 Markets await USDA production report

Wheat futures were slightly higher Thursday. Futures bounced on short covering and bargain hunting ahead of the USDA Crop Production report due out this morning. Gary Hofer of Gary Hofer Commodities says it'll be interesting to see the numbers. HOFER "Today's debate is about whether USDA stats will show a reduction in winter wheat production expectations. One side says the dry condition in the western third of the hard red winter wheat belt hurt the crop enough to change the balance sheet. The other side says late rains stopped the decline and improved the remainder enough to keep production numbers steady. No one is saying there should be larger winter wheat numbers. The answer will be this morning so the focus will be on that issue for at least the opening few minutes of trade but after that we're likely to see a return to the slightly negative range bound course as before." On Thursday Chicago July wheat was up .01 to 3.14 1/4. July corn 2.15 ½ down ½. Portland cash white down to 3.86. August new crop 3.81 Club White down to 3.92 Pacific Northwest HRW 11.5 percent protein 3.92 Export barley 101 /ton Cattle futures were lower. August live cattle down 1.10 to 82.13 August feeders at 111.20, down 1.60. July Class III milk at Chicago down .18 to 14.05. I