06/21/06 Rally in wheat; profit taking in cattle

Marketline June 21, 2006 Wheat futures posted good gains Tuesday. Brian Hoops of Midwest Market Solutions says a short covering rally was sparked by a drop in spring wheat crop ratings by USDA. Hoops: "Spring wheat way down seven percent from last week at 60% good to excellent. That's compared to 79% last year so the wheat crop is suffering and could have a next move led higher by Minneapolis contracts. Also winter wheat harvest looks like we are nearing the end of most of the harvest pressure as we are 38% done there. The average is 21. So harvest is concluding sooner rather than later. The end of the harvest pressure that is." Some brokers said Tuesday's gains were limited by a Chinese forecast of a 102 million ton wheat crop, which would be four million tons larger than last year. On Tuesday July Chicago wheat was up 8 ½ cents at 3-67. July corn unchanged at 2-29 ¾. Portland cash white wheat was two to three cents higher at mostly 3-74. First half August up four at 3-80. Club wheat 3-74. HRW 11.5 percent protein 15-16 cents higher at 5-33. Dark northern spring 14% protein up 12 at 5-66. No Portland barley bids. Cattle futures were lower Tuesday on profit taking from recent gains and weakness in the hog pit. USDA officials and their Japanese counterparts talked by video conference Tuesday but USDA says no deal on beef was made. Aug live cattle down 70 cents at 83-20. Aug feeders down 45 at 112-75. July Class III milk down two cents at 11-35. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.