Hard red winter wheat basis bids held mostly steady in the US Plains on Thursday, with dealers reporting only scattered farmer sales after a big rally in wheat futures on Wednesday.
One Kansas dealer said farmers were selling stored wheat and also making forward sales of new-crop wheat for harvest in 2007 and 2008, taking advantage of current prices. But most dealers said producers were holding out, hoping prices would climb even higher. Domestic mills were comfortably supplied for the moment.
Producers continued to plant winter wheat, except in dry areas of Oklahoma, where they were hoping for more rain. Crops were mostly seeded in parts of Kansas, merchandisers said.
Futures prices at the Kansas City Board of Trade closed sharply higher on Wednesday, following a limit-up rally in Chicago Board of Trade wheat due to export demand, tightening world supplies and heavy technical buying by funds. KCBT December wheat closed 12-1/4 cents higher at $5.04 per bushel.
KCBT wheat futures were called to open 1 to 2 cents higher on Thursday on advances expected in Chicago wheat. The market received another reminder of the tightening stocks of wheat when Ukraine's economy minister said on Thursday Ukraine would impose a new licensing system on wheat exports, a move that will slow shipments to international markets.
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