10/24/05 Avian flu and the market

Marketline October 24, 2005 Wheat futures were lower Friday getting spillover from a steep decline in soybeans where funds were sellers. Christopher Modoff of R.J. O'Brian at the Chicago Board of Trade explains what had traders worried about the soybean complex. Modoff: "Bird flu continues to be something that is talked about as depressing demand. Especially on the meal side of things and that remains an issue." A lull in wheat export demand also led to some speculative selling with analysts noting that wheat futures tend to falter at this time of year as Southern Hemisphere crops in Argentina and Australia begin being harvested. On Friday December Chicago wheat was down 2 1/4 cents at 3-30. December corn down 1 1/4 cents at 2-01 ½. Portland cash white wheat generally steady at mostly 3-61. Club wheat 4-12. PNW HRW 11.5 percent protein lower at 4-56. Dark northern spring 14% protein lower at 5-05. Export barley 104 dollars a ton. Cattle futures were lower Friday ahead of the USDA Cattle on Feed Report. Packers bought cattle at 88 dollars, lower than expectations and boxed beef was lower at late week. Dec live cattle down 63 cents at 89-93. Nov feeders down 150 at 114-43. USDA says cash feeders and stockers sold unevenly steady to four dollars lower last week and noted trucking shortages to move cattle with high fuel costs getting some of the blame. The Cattle on Feed Report was viewed as slightly negative. The on feed numbers were about unchanged from a year ago, placements were down one percent and marketings up one percent. Nov Class III milk Friday was down 17 cents at 13-67. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.