Spot basis bids for hard red winter wheat in the US Plains were unchanged on Friday with movement sluggish amid continued expectations of a small new winter wheat crop.
Though most merchants were holding the basis steady amid lacklustre spot demand, the basis was notched 5 cents higher in Enid, Oklahoma, even as it fell back a nickel in Catoosa, Oklahoma, as elevators adjusted for spot business needs.
The main focus was approaching harvest and expectations for a drought-hit, short new crop.
The USDA on Friday forecast total US winter wheat production at 1.323 billion bushels, down from 1.499 billion bushels harvested in 2005.
The USDA estimated production in Kansas, the top US wheat-producing state, at 319.6 million bushels, with an average yield forecast at 34 bu/acre on a projected 9.4 million harvested acres. Last year, Kansas produced 380 million bushels. USDA forecast that Texas would produce only 35.1 million bushels, down from 96 million in 2005.
The futures market was expected to post further gains on Friday, fuelled by the expectations for a short crop. On Thursday, the new-crop July contract at the Kansas City Board of Trade closed up 6-1/4 cents at $4.71-1/2.
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