05/18/06 Plains forecast boosts wheat

Marketline May 18, 2006 Wheat futures were strongly higher Wednesday. New contract highs were made at all exchanges with Kansas City hitting its highest level since April of 1997 with new crop July at KC settling above $5. Driving the market was the forecast for hot dry weather in the central Plains where the hard red winter wheat crop is in the grain filling stage so yield could be impacted. Underpinning market is wheat demand from Iraq and India. Argentina is saying its farmers will plant ten percent more wheat for 2006-2007 than they did the previous year. On Wednesday July Chicago wheat was up 19 ½ cents at 4-23. July corn up four at 2-63. Portland cash white wheat got a little benefit from the run up in futures and was three cents higher at mostly 3-85. New crop August unchanged to higher at 3-98. Club wheat 3-95. PNW HRW 11.5 percent protein18-19 cents higher at 5-57. Dark northern spring 14% protein 15-18 higher at 5-94. No Portland barley bids. Cattle futures were mixed Wednesday. Traders were awaiting cash fed cattle market developments and also positioning ahead of Friday's monthly Cattle on Feed Report from the USDA. Analysts disagree on whether April placements dropped sharply or increased. Average guess for the feedlot inventory is up 8.5 percent. June live cattle up seven cents at 77-72. Aug feeders down 35 cents at 106-47. June Class III milk up seven cents at 11-29. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network.