05/25/06 Liquidation in metals pressures grains

Marketline May 25, 2006 Wheat futures posted another day of losses Wednesday. Sharply lower gold prices contributed to speculative long liquidation. Slow export demand, expectations for higher spring wheat acreage and increasing harvest were also cited as pressuring the market. Joe Vidora with F.C. Stone at the Chicago Board of Trade says wheat needs a break and he expects we'll see futures pull back some more. Vidora: "You have to look and think that wheat has to go down to $4 at least. So we will call that another 12 cents. I am not really friendly at this moment only because of good weather, outside markets. Longer term, I would not stay bearish longer term in any of these markets." This morning traders get the weekly export sales report from USDA. On Wednesday July Chicago wheat was down eight cents at 4-11 ¾. July corn down 3 ½ at 2-49 ½. Portland cash white wheat was one to two cents lower at mostly 3-83. August new crop 3-99. Club wheat 3-93. HRW 11.5 percent protein down a dime at 5-62. Dark northern spring 14% protein nine cents lower at 5-86. No Portland barley bids. Cattle futures posted solid gains again Wednesday. Most traders said firm boxed beef values were the major factor. Expectations have been for beef prices to drop but quotes have instead increased. June live cattle up 33 cents at 77-95. Aug feeders up 60 at 107-43. June Class III milk up eight cents at 11-28. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.