05/16/06 Wheat futures lower; cattle higher

Marketline May 15, 2006 Ahead of Friday's USDA report Marc Chiodo of Slipka Commodities thought any surprise would be market bearish, but the government numbers were bullish. Winter wheat production at 1.3 billion bushels was below trade estimates, particularly the 23 percent drop in hard red winter wheat.. New crop U.S and world wheat carryout will drop year to year. That sent wheat futures to new contract highs Friday and Chiodo thinks after perhaps a little setback, Wall Street funds will keep wheat moving up. Chiodo: " And as long as the U.S. dollar remains down at its current level it is very bullish the whole commodity spectrum. That is basically what we are seeing out of Wall Street. A lot of their money is coming over. Don't care the price. Don't care what it is." On Friday July Chicago wheat was up 9 ½ cents at 4-01 ½. July corn up 11 ¼ at 2-58 ¼. Portland cash white wheat steady to five cents higher at mostly 3-80. August new crop higher at 3-93. Club wheat 3-90. HRW 11.5 percent protein up nine cents at 5-38. Dark northern spring 14% protein higher at 5-74. No Portland barley bids. USDA's corn numbers pressured cattle futures early Friday but contracts came back to post good gains on news of near steady fed cash cattle sales in the southern Plains. Funds were strong buyers. USDA is forecasting corn prices for 2006-2007 at $2.25 to $2.65 per bushel, compared with $1.95 to $2.05 for the current year. June live cattle were up 95 cents at 77-40. Aug feeders up 45 at 106-15. June Class III milk up six cents at 10-91. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.