06/20/05 Wheat follows soybeans

Marketline June 20, 2005 Wheat futures had a positive day Friday thanks to a rally in soybeans prompted by Midwest weather concerns. Although dry eastern Australia has received rain, traders are noting dryness concerns in Argentina and a delay in the Indian monsoon. In the U.S,. harvesting of the red winter wheats continue. Gary Hofer of Gary Hofer Commodities, says if beans continue to burn brightly and there are no other outside factors interfering, the pathway for red wheats looks to be sideways with a slight upward bias. Hofer: "The supply and demand fundamentals are not helpful being uniformly bearish. But in the futures market is not what everyone says, it is what they do. The funds are on the verge of covering their heavy short positions and cash wheat is still not overwhelming the pipeline." On Friday Chicago July wheat was up four cents at 3-27 ½. July corn up 3 ½ at 2-29. Portland cash white wheat was mixed at mostly 3-86. New crop August 3-76. Club wheat 3-92. PNW HRW 11.5 percent protein higher at 4-07. Dark northern spring 14% protein higher at 5-21. Export barley 102 dollars a ton. USDA's Cattle on Feed Report Friday was being called slightly positive to market expectations. May placements were down six percent for a year ago, May marketings down one percent and the June 1st feedlot inventory was up one percent from a year ago. There was some short covering in cattle futures ahead of the report, but sales of $84 fed cattle in the Plains was disappointing to the market. Aug live cattle up 47 cents at 79-90. Aug feeders down 27 at 107-58. July Class III milk down a dime at 13-93. After the close USDA reported May milk production up 4.4 percent from a year ago. That was viewed as bearish. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.