05/13/05 Bearish reaction to USDA numbers

Marketline May 13, 2005 The USDA yesterday estimated U.S. winter wheat production this year at 1.59 billion bushels up six percent over last year. That was higher than trade estimates And weekly export sales were below expectations. So, Thursday was a down day for wheat futures. But Gary Hofer of Gary Hofer Commodities, says the nickel drop at Chicago wasn't that bad given all the bearish news. Hofer: "The trend has not changed from downward yet though somewhere there is a point where all the bad news is in. The U.S. winter wheat crop is likely to shrink some from its lofty numbers from here to harvest so this is not a good time to be ignoring the markets." On Thursday Chicago July wheat was down a nickel at 3-08 3/4. July corn down 2 1/4 at 2-04 1/4. Portland cash white wheat three cents lower at mostly 3-91. New crop August lower at 3-72. Club wheat 3-96. PNW HRW 11.5 percent protein lower at 3-97. Dark northern spring 14% protein lower at 4-89. Export barley 104 dollars a ton. Media reports out of Japan say the nation's agriculture and health ministries have approved imports of beef from non-BSE tested cattle 20 months of age and younger but the final decision is up to the Food Safety Commission. Still, a Japanese newspaper says imports of U.S. beef could resume this summer. Dressed cattle sold two dollars lower than last week in the Plains yesterday and boxed beef continued to slip. Cattle futures were mostly higher. June live cattle up 35 at 86-80. Aug feeders up 52 at 111-90. June Class III milk up 44 cents at 13-74. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.