04/18/05 China buys some white wheat

Marketline April 18, 2005 The wheat market may get some direction today on the results of a weekend tender by Egypt for wheat. One surprise in the USDA's latest export sales report was that China purchased about 1.8 million bushels of soft white wheat earlier this month, their first white wheat buy in many months. Friday wheat futures were lower again with steep losses at Minneapolis which hit new contract lows. Gary Hofer of Gary Hofer Commodities, says the trend remains negative. Hofer: "But it is becoming clear that the spring weather season may allow at least a breathing spell for wheat prices as there are dry stories among Oklahoma and Texas produces and ideas of nagging drought in the PNW as well. It won't much, just a hint of trouble to nudge the short sold traders to cover. We are in the weather season so that will likely be the dominant theme for the next few weeks." On Friday Chicago May wheat was down 3 3/4 cents at 3-05 1/4. May corn down 1 1/4 at 2-06 1/4. Portland cash white wheat bids two to three cents higher but mostly 3-90. New crop August 3-72. Club wheat 3-95. PNW HRW 11.5 percent protein lower at 3-90. Dark northern spring 14% protein lower at 4-73. No export barley bids. Fed cattle saw an active trade in the southern Plains Friday at 92-dollars. Boxed beef was steady to weak. Despite the better cash trade futures were lower Friday. June live cattle down 42 cents at 84-42. May feeders down two cents at 106-22. May Class III milk up three cents at 14-18. On Friday USDA reported U.S. milk production in March was up 3.1% over March 2004. Production in Idaho was up 12%. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.