07/07/05 Wheat futures follow beans down

Marketline July 7, 2005 Soybeans were lower Wednesday as traders thought a tropical storm out of the Gulf might bring rain into the northern soybean belt. As beans went so did wheat futures. Gary Hofer of Gary Hofer Commodities, says the wheat fundamentals alone remain bearish. Hofer: "Winter wheat harvest is well past half way completed. No major problems to date and none on the horizon. Spring wheat is in great shape and exports are routine at best. When the beans and corn top out, and there is no reason to think they have done so yet, wheat will be the target for a lot of sellers. From here it would take some serious trauma in the bean pit to pull wheat to sustain new highs. Wheat prices remain roughly in the middle of their recent range. And we still have to deal with all the new wheat that is coming in." And some of that is northwest wheat now as harvest began in some areas of eastern Oregon last week. On Wednesday Chicago September wheat was down 4 ½ cents at 3-42. September corn down 1/4 at 2-39 3/4. Portland cash white wheat steady to three cents higher at mostly 3-77. August new crop 3-74. Club wheat 3-80. PNW HRW 11.5 percent protein lower at 4-03. Dark northern spring 14% protein lower at 5-08. Export barley 100 dollars a ton. Cattle futures were higher Wednesday getting support of reports of strong retail beef movement over the 4th of July Holiday weekend. Analysts think fed cattle will sell steady to a dollar higher than last week's 82 dollars. Aug live cattle up 47 cents at 80-63. Aug feeders up 93 at 111-65. Aug Class III milk up eight cents at 15-20. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.