05/21/08 Wheat futures can't hold gains

Market Line May 21, 2008 Fund buying took wheat futures higher in early trading Tuesday but the gains did not hold and wheat contracts closed lower at Chicago and Kansas City, mixed at Minneapolis. The market's early strength came from reduced winter wheat crop ratings, a lower dollar and higher crude oil. Brian Hoops of Midwest Market Solutions says Australia was a factor too. Hoops: "There are some concerns about the Australian wheat crop as it has missed some rains and thoughts are that once a huge crop could now be diminished unless they get some rains. The drought potential is still going on in here." On Tuesday Chicago July wheat was down seven cents at 7-84. July corn up three at 5-89 ¾. Portland new crop soft white wheat seven to ten cents lower at 7-90 to 8-08. August HRW 11.5 % protein down eight cents at 9-10. August DNS 14% protein up nine cents at 9-98. Barley at the coast 198 dollars a ton. Agriculture Secretary Ed Schafer is proposing a total ban on downer cattle for food use. Short covering and fund buying helped cattle futures close higher Tuesday. There were thoughts Monday's losses were overdone. Higher cash feeder values also helped feeder futures. June live cattle up 55 cents at 93-65. August feeders up 192 at 113-67. June Class III milk up 21 cents at 20-51. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.