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US hard red winter wheat spot basis bids were steady to firmer Tuesday, with wheat sales out of the country seen slowing amid a setback in futures prices, merchants said. "Since the board dropped off the selling stopped quite a bit," said one Kansas wheat dealer.
The basis was 3 cents firmer in Hutchinson, Kansas, and 2 cents firmer in Salina, Kansas. Meanwhile, protein premiums for railcar wheat to and through Kansas City were mostly steady, though the premium for ordinary wheat was up 1 cent.
With harvesting of the new US hard red winter wheat crop essentially wrapped up - estimated at 86 percent by the USDA on Monday - farmers were looking ahead to fall planting and harvesting of row crops. And soil moisture levels were a concern in many parts of the Plains.
The market was also keyed in to production prospects for the new US spring wheat crop. Crop scouts were touring North Dakota on Tuesday to assess the crop and were expected to issue a yield.
In world wheat news, India's State Trading Corp expected about 760,000 tonnes of imported wheat to have arrived at ports by the end of August, the food ministry said Tuesday. Since February, India has contracted to import 3.5 million tonnes of wheat to augment government stocks. Wheat dealers were keeping a close eye on futures prices at the Kansas City Board of Trade, which have been volatile of late and were expected to mount a recovery Tuesday from Monday's slide.
KCBT futures settled 2 to 7-1/2 cents lower Monday, with September 6-3/4 cents lower at $4.99-1/4 per bushel and December down 5-3/4 cents at $5.15-3/4.

Copyright Reuters, 2006

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