02/02/05 Wheat futures up on technical buying

Marketline February 2, 2005 Short covering helped wheat futures move slightly higher Tuesday amidst a lack of fundamental news. Gary Hofer of Gary Hofer Commodities, says many traders are waiting to see what the E.U. does tomorrow in its first wheat export rebate auction since early summer of 2003. Hofer: " If the restitution levels are high the market will be negative as that would suggest a wheat trade war among heavily positioned wheat exporters. Lighter subsidies may be less disruptive, but there is no way the resumption of export subsidies can be considered a positive development. In the background the U.S. dollar is flat leaving traders without directional hints. So the wheat market will wait a little longer for direction as we wear down the normal seasonal time period known as the "February break" in order to being the spring weather season, where we might find some new ideas on which to trade." On Tuesday Chicago March wheat was up 1 1/4 cents at 2-92 1/4. March corn unchanged at 1-97. Portland cash white wheat steady to two cents higher at mostly 3-91. New crop August white wheat 3-65. Club wheat 3-97. PNW HRW 11.5 percent protein 4-23. Dark northern spring 14% protein 5-11. Export barley 97 dollars a ton. Tuesday was another quiet day for the Plains fed cattle trade. Boxed beef was called steady to weak on moderate demand and offerings. Cattle futures were higher with some traders expecting better cash prices this week. April live cattle up 17 cents at 85-50. March feeders up 40 at 100-92. March Class III milk down 53 cents at 13-93. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.