09/07/05 Optimism over Gulf exports helps grains

Marketline September 7, 2005 Wheat futures were higher at Chicago in the first post-holiday trading session, mixed at Kansas City and Minneapolis. Chicago benefitted from spillover support from corn and soybeans. The row crops were supported by reports indicating damage to Gulf export elevators was not severe and some ships are moving. A big obstacle is electrical power for terminals. USDA's weekly wheat export inspections report matched trader expectations. The Australian government is forecasting a wheat crop of 19.7 million metric tons, down from last year's 20.4. While Portland soft white wheat prices at two-year lows, Mike Kruger of M-K Commodities in Oregon doesn't see much more downside pressure. Kruger: "We are below French intervention levels. Doesn't mean we can't go lower if the farm keeps selling it. But geez, I don't see much down from here, we'll be at the loan price." On Tuesday December Chicago wheat was up a penny at 3-21. December corn up four at 2-21 1/4. Portland cash white wheat steady to a penny higher at mostly 3-38. Club wheat 3-48. PNW HRW 11.5 percent protein 4-23. Dark northern spring 14% protein 4-82. Export barley 105 dollars a ton. Cattle futures were sharply higher Tuesday recovering most of the ground lost last week. A steep drop in oil futures and strength in the stock market attracted buying interest on ideas last week's break was overdone. There was some evidence beef demand over the holiday was stronger than expected. Oct live cattle up 167 at 82-88. Oct feeders up 155 at 110-13. Oct Class III milk down three cents at 14-25. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.