04/03/07 Falling corn hurts wheat, helps cattle

Market Line April 3 , 2007 It looked like the futures market was trying to buy some soybean acres at the expense of corn Monday and that spilled over to pressure wheat futures. USDA's 90.5 million acre estimate for corn plantings was still having a negative impact on the market yesterday. Export inspections for wheat came in within trade expectations at 16.6 million bushels. The Plains also saw more moisture over the weekend. And Brian Hoops of Midwest Market Solutions in Yankton South Dakota says the winter wheat ratings out after the close of trade Monday were good. Hoops: "The crop progress report from the USDA came in at 71 good to excellent versus 38 a year ago. Kansas came in at 77%, Oklahoma at 74 and Texas at 67. And those high ratings will keep a lid on the winter wheat rallies. Spring wheat was estimated at 3% seeded. About on line with the normal pace so no reason to add a lot of weather premium to the markets." On Monday Chicago May wheat was down a dime at 4-28. May corn down 19 ¾ at 3-54 ¾. Portland cash soft white wheat steady to five cents lower at mostly 5-80. Club wheat 5-80. August new crop soft white eight to sixteen cents lower at 4-84. HRW 11.5 percent protein seven to 11-cents lower at 5-53. Dark northern spring 14% protein down a penny at 5-89. Barley at the coast 168 dollars a ton. August at 148. The drop in corn futures proved positive for cattle futures which closed sharply higher Monday. Higher boxed beef values and expectations of higher cash fed cattle prices this week were also supportive. June live cattle up 152 at 96-40. May feeders up 125 at 111-22. May Class III milk down 19 cents at 15-35. I'm Bob Hoff and that's Market Line on the Northwest Ag Information Network. Now this.