10/13/05 USDA report friendly to wheat

Marketline October 13, 2005 Wheat futures were higher Wednesday as USDA cut projected U.S. and world wheat ending stocks. The U.S. reductions were mainly in hard red wheats with hard red spring wheat carryover projected to be the smallest since 1995-96. Jim Bower, owner and president of Bower Trading says its clear wheat demand is more robust than most in the trade had thought. Bower: "With the ending stocks at 530 million bushels, that's down 42 million bushels below the trade estimate and certainly indicates to me that the disappearance is greater than the trade is expecting. Also the global number on wheat at 137.4 mmt is also about 2.3 mmt below the trade estimate which indicates there that we are also starting to see some wheat business pick up." On Wednesday December Chicago wheat was up 4 3/4 cents at 3-47 ½. December corn up 3 1/4 cents at 2-05 3/4. Portland cash white wheat one to three cents higher at mostly 3-63. Club wheat 4-08. PNW HRW 11.5 percent protein higher at 4-71. Dark northern spring 14% protein higher at 5-32. Export barley 104 dollars a ton. There is a strike at the Tyson's beef plant in Brooks, Alberta but the company plans to keep operating. Brazil reported 153 head of cattle infected with foot and mouth disease. Some cattle futures contracts rallied to new highs Wednesday but closed mixed. Dec live cattle down 17 cents at 91-20. Nov feeders down 17 at 116-83. Nov Class III milk up a dime at 13-80. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.