Basis bids were steady to weaker Friday as merchants adjusted for a lull in demand. Basis levels were 2 cents weaker in Hutchinson, Kansas, 6 cents weaker in Salina, Kansas, and 2 cents weaker in Wellington, Kansas. Protein premiums were unchanged.
Merchants said country movement has been constrained by logistic problems, and USDA's weekly grain transportation report issued Thursday confirmed continued concerns.
USDA said four-week average grain car loadings on Class 1 railroads have been below 3-year averages for the last four weeks. Freight rates for all modes of transportation are expected to increase due to fuel costs and capacity issues, according to USDA.
The Kansas City Board of Trade futures market settled steady to 2-3/4 cents lower Thursday, with December at $3.49-3/4 per bushel, down 1-1/2 cents, and March at $3.49, down 2-3/4 cents.
The market was expected to post further losses on Friday after bearish stocks data issued by the US Department of Agriculture.
USDA said Friday that 2004/05 global wheat ending stocks were pegged at 142.2 million tonnes, up from the October forecast for 141.5 million. US ending stocks were forecast at 568.0 million bushels, higher than analysts' expectations for 554.0 million.
USDA also Friday said that US wheat export sales last week totalled 657,100 tonnes, well above trade estimates for 300,000 to 400,000 tonnes.
The USDA wheat stocks data was expected to weigh on futures prices Friday, traders said. Weakness in corn and soybean futures was also seen contributing to losses.
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