01/31/05 Cattle herd expanding

Marketline January 31, 2005 USDA's cattle inventory report issued Friday said there were 95.8 million head of cattle and calves in the U.S. as of January 1st, one percent more than last year and the first increase in the nation's herd in nine years. Beef replacement cows were pegged up four percent. The report was in line with expectations. Analysts say the numbers imply expansion of the beef herd is underway. Fed cattle sold in the southern Plains Friday at 89 dollars, down a dollar from the previous week. Boxed beef lost a couple more bucks a hundredweight Friday. Ahead of the inventory report, March live cattle futures were unchanged at 91. March feeders up 32 cents at 100-22. March Class III milk up 39 cents at 15-74. Wheat futures were narrowly mixed Friday with contracts still trading around their lows. Gary Hofer of Gary Hofer Commodities, says with Chicago weak, Portland white wheat is not likely to race to any new highs. Hofer; "A forty-cent run in Chicago may inspire ten to twenty cents in Portland pushing the price back up above the $4 level again. But such an event would probably be viewed as a chance to sell rather than a new mandate for wheat especially with white wheat already more than a $1 over soft red. We begin the week with a typical month-end scramble by trading funds behind us." On Friday Chicago March wheat was up a half cent at 2-90. March corn unchanged at 1-95 3/4. Portland cash white wheat down two cents at mostly 3-91. New crop August white wheat lower at 3-64. Club wheat 3-96. PNW HRW 11.5 percent protein higher at 4-25. Dark northern spring 14% protein mixed at 5-09. Export barley 97 dollars a ton. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.