05/24/06 Wheat futures lower; cattle higher

Marketline May 24, 2006 Wheat futures ended lower Tuesday after having pushed to new contract highs early in the session. The decline in the weekly winter wheat ratings was supportive, but Brian Hoops of Midwest Market Solutions, and others, say maybe damage to the hard red winter wheat crop has been pretty well priced into the market. Hoops: "Professional traders are going to view the crop condition report, particularly the winter wheat, they are going to look at it as the last bullish information before harvest starts in earnest and look to take some profits. Secondly, they are going to look at the spring wheat crop at 76% good to excellent, which are very high ratings, and are probably going to do some hedging on the spring wheat crop. So we did close off the session highs." Traders are also waiting for news of wheat sales to Iraq or India and any fresh news about Argentina's export situation. Some dryness in China has also been mentioned. On Tuesday July Chicago wheat was down 6 ½ cents at 4-19 ¾. July corn down 1 ½ at 2-53. Portland cash white wheat one to three cents higher at mostly 3-85. August new crop higher at 4-01. Club wheat 3-95. HRW 11.5 percent protein lower at 5-69. Dark northern spring 14% protein lower at 5-88. No Portland barley bids. Cattle futures were mostly higher Tuesday despite a steep drop in lean hog futures. Market observers says the cash cattle market appears to be solid this week despite a reduced slaughter next week with the Memorial Day Holiday. June live cattle up 30 cents at 77-63. Aug feeders up 13 at 106-83. June Class III milk up six cents at 11-20. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.