US Plains hard red winter wheat basis bids were mostly steady on Thursday, with a slight increase in sales out of the country noted as futures prices rose, merchants said. Domestic mill demand continued to underpin the market as farmers kept a close eye on new-crop conditions in the field and price gains on the board.
Kansas City Board of Trade wheat futures settled 5 to 15-1/2 cents higher on Wednesday, with the May contract up 15-1/4 cents, or 3 percent, at $5.09, and new-crop July up 14-1/2 cents, or 2.96 percent, at $5.03-3/4. May wheat climbed as high as $5.22 on the day, and July rose to $5.18.
Futures were expected to see more strong gains Thursday as wheat weather concerns persisted in Australia and Europe. As well, weather remained a key factor in the Plains, with cool and wet conditions this week seen helping benefit the new HRW wheat crop after freeze damage suffered earlier this month.
Meanwhile, many farmers were wrestling with decisions about whether to try to destroy their damaged fields and try to plant something else. On the export front, USDA reported Thursday that weekly net export sales totalled 278,200 tonnes, down 19 percent from the previous week and 37 percent below the prior four-week average. Net sales for delivery in 2007/08 totalled 143,200 tonnes.
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