US Plains hard red winter wheat basis bids were steady to firmer Monday, and many wheat merchants were posting protection in anticipation of a sharp downturn in futures. Some were taking 8 cents a bushel protection after overnight trading action saw prices drop 8 to 8-3/4 cents.
Futures at the Kansas City Board of Trade were called to open 7 to 10 cents lower Monday after the May contract ended Friday down 4-1/2 cents at $4.99 per bushel and new-crop July slipped 2-1/4 cents to $5.01-3/4. The losses came amid diminishing concerns about crop problems in Europe as rainfall was expected to benefit the crops there.
Meanwhile, damage assessments of the Kansas wheat crop were expanding this week as a group of wheat industry players launched a tour of hundreds of wheat fields in the country's biggest wheat-producing state. The Wheat Quality Council was leading the tour and plans to announce a projected yield and production forecast for the state on Thursday.
Mill demand remained a factor underpinning pricing. Protein premiums for railcar wheat to and through Kansas City were 1 cent higher for ordinary through 14 percent protein wheat. Meanwhile, India's State Trading Corp was expected to float a tender Monday for the importation of one million tonnes of wheat between May and July, a corporation source told Reuters. The tender was expected to close on May 10 and would be valid up to May 18.
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