03/07/05 Focus on South American weather

Marketline March 7, 2005 Futures traders will be checking South American weather as they return to the pits today to see if Argentina is getting rain and if moisture is still in the forecast for later this week in Brazilian soybean areas. Wheat futures did benefit from soybeans and the concerns about the South American crop last week, but contracts closed lower Friday. Analysts say the fundamentals for wheat remain bearish and the recent run up in prices was overdone. They see pressure for wheat futures to return to pre-rally levels. With three months remaining in the current marketing year, white wheat prices at Portland are averaging 11 cents better than the same period last year at $3.96 a bushel. Red spring wheat prices are four percent higher averaging $4.88. Barley prices are down 19 percent averaging $93.30 a ton On Friday Chicago May wheat was down a penny at 3-37. May corn down a penny at 2-17. Portland cash white wheat mixed at mostly 3-96. New crop August white wheat 3-85. Club wheat 4-01. PNW HRW 11.5 percent protein lower at 4-27. Dark northern spring 14% protein lower at 4-98. Export barley 107.50 a ton. Cargill said Friday it was cutting back production at several of its beef plants and cited in part the continued closure of the border to Canadian cattle. A DTN analyst expects other packers may follow suit. Even so after last week's strong fed cattle prices expectations are for feedlots to price cattle higher this week given short ready cattle numbers. Boxed beef was higher Friday. Cattle futures were higher. April live cattle up 32 cents at 89-02. April feeders up 17 at 101-67. April Class III milk up six cents at 14-21. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.