12/27/05 Feedlot inventory up

Marketline December 27, 2005 Analysts say last Friday's USDA Cattle on Feed report was negative but was probably already in the market. If not they say reaction this morning could be bearish. USDA pegged the feedlot inventory as of December 1st up three percent from a year ago. November placements were up 17 percent as poor winter wheat grazing conditions in the southern Plains has producers moving cattle into feedlots. November marketings were up four percent from a year ago. The markets were closed yesterday so ahead of the report Friday, Feb live cattle were up 17 cents at 95-72. March feeders up a dime at 114-33. Feb Class III milk up two cent at 12-82. Wheat futures continued to benefit from technical strength again Friday and closed higher. There was little fundamental news. We're in between holidays and the end of the year is coming up. Mark Chiodo of Slipka Commodities in Minneapolis has an overview of what this week may bring in grains generally. Chiodo: "Seasonally this is typically a sell-off week coming up in the bean complex, but everyone is worried about the fund money and the index money that may or may not come. The wheat seems to be on a rally. Most of the analysts are saying buy it. I've not run across one yet that was talking about selling wheat. So you have some strength there." On Friday March Chicago wheat was up 3 3/4 cents at 3-34 ½. March corn up 1 1/4 at 2-14. Portland cash white wheat steady at mostly 3-46. Club wheat 3-93. PNW HRW 11.5 percent protein higher at 4-66. Dark northern spring 14% protein higher at 5-11. No barley bids. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.