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US Plains spot hard red winter wheat basis bids were steady to mixed on Tuesday as business remained spotty and harvest advanced, merchants said. Merchants continued to roll their basis bids to post against the September futures contract after first notice day for deliveries against the July contract last Thursday. There were no deliveries posted on Tuesday.
Farmers were slow sellers of the new crop, according to elevators, waiting for higher prices. Protein premiums were flat Friday.
Kansas City Board of Trade wheat futures were expected to open 2 to 3 cents higher on Tuesday as a follower to soybean futures, which were expected to rally on detrimental hot and dry weather, traders said.
The wheat market continued to see some light harvest pressure, but there were few other fundamental forces altering wheat's status as a follower, traders said.
There was some export business, but it was mostly routine. Taiwan was set to tender for 46.2 million tonnes of US wheat and Japan will seek 125,000 tonnes of wheat on Thursday.
The market settled 1-1/2 to 4-1/2 cents higher on Friday, with the July up 1-1/2 cents at $3.29-1/2, and the September at $3.37-1/4, up 2-3/4 cents.
Markets were closed Monday for the US Independence Day holiday.

Copyright Reuters, 2005

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