05/23/06 Hot Plains temps boost wheat futures

Marketline May 23, 2006 After some early selling pressure wheat futures bounced back to close strongly higher Monday. Funds were buyers on forecasts for more hot weather in the Plains this week. Reports coming in from early harvesting in Texas and Oklahoma are confirming low yields. After the close USDA's crop ratings showed more deterioration in the U.S. winter wheat crop. However, Brian Hoops of Midwest Market Solutions in Yankton, South Dakota, says USDA's ratings for spring wheat could pressure Minneapolis today. Hoops: "Conversely the spring wheat crop is off to a great start; 76% good to excellent versus 75 a year ago. So, I would expect a little setback off of this news. It depends on how low we can take the Kansas City market after we closed at new contract highs." Some brokers are warning the Chicago market could fall apart quickly because unlike the drought reduced hard red winter crop, soft red winter wheat stocks are forecast to increase year to year. On Monday July Chicago wheat was up a dime at 4-26 ¼. July corn up 1 ¾ at 2-54 ½. Portland cash white wheat was mixed at mostly 3-85. August new crop mixed at 3-94. Club wheat 3-95. HRW 11.5 percent protein up 14 cents at 5-75. Dark northern spring 14% protein up 12 at 5-96. No Portland barley bids. The fact USDA's Cattle on Feed Report issued last Friday was neutral helped cattle futures close higher Monday in a choppy session. June live cattle up a dime at 73-33. Aug feeders up 48 cents at 106-70. June Class III milk up two cents at 11-14. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.