09/05/06 Watching weather and demand

Marketline September 5, 2006 As traders return from their long holiday weekend today they will be checking on rainfall in the U.S. southern Plains and the weather outlook for Argentine and Australian wheat areas. Its been dry in those countries and September is a key month for wheat yields in the southern hemisphere. Analysts say any more dry weather in Argentina and Australia should mean more of a weather premium in both U.S. and world wheat prices. Moisture in the U.S. southern Plains and prospects for more had Kansas City contracts leading wheat futures lower Friday. Hopes of new business to India or Iraq limited selling pressure. Commentaries also note that market action the last few weeks has turned strongly positive. On Friday December Chicago wheat was down 2 ¾ cents at 4-19 ½. December corn down 2 ¼ at 2-45 ¾. Portland cash soft white wheat was steady at mostly 4-08. Club wheat 4-43. HRW 11.5 percent protein down seven cents at 5-42. Dark northern spring 14% protein two to three cents lower at mostly 5-58. No Portland barley bids. Cash fed cattle sold in some instances up to 93 dollars a hundredweight late last week and that jump in price helped live cattle futures close steady to higher Friday. Feeder contracts were mixed. Some analysts see cattle futures as overbought right now. In addition to cash market action another supporting factor Friday was news that another Japanese supermarket chain was stocking U.S. beef. Ahead of the long weekend Friday, Oct live cattle were up 22 cents at 93-35. Oct feeders down 17 at 116-33. Oct Class III milk down 19 cents at 12-75. I'm Bob Hoff and that's Marketline on the Northwest Ag Information Network. Now this.