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Hard red winter wheat basis bids were steady to firmer Friday in the US Plains, with spot demand driving the firmer tone, merchants said.
The Gulf track bid was 2 cents a bushel firmer while protein premiums for railcar wheat to and through Kansas City were steady to 10 cents a bushel firmer reflecting the need for fresh supplies. "Nobody is selling anything. There is no wheat moving," said one Kansas merchant.
The recent addition of snow and rain to HRW wheat fields in the Plains was seen as beneficial to the new crop, though more moisture was needed, farmers said.
The futures market at the Kansas City Board of Trade has been fluctuating widely over the weather, and on Thursday dropped hard. Prices ended 2 to 12-1/2 cents lower, with May down 9-1/2 cents at $4.07-1/2 per bushel and July down 9-3/4 cents at $4.10-3/4. May wheat bottomed at $4.04 on the day, the lowest point since February 2, while July wheat fell to $4.07 which was the cheapest since February 14. Futures prices were expected to see a slight rebound Friday, though market-moving news was scarce, traders said.

Copyright Reuters, 2006

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