Spot basis bids for US hard red winter wheat were mixed Thursday, but several interior elevators hiked their bids as much as 7 cents per bushel on concerns about movement as rain stalled harvest, dealers said.
"The interior basis is rock solid. Guys are worried about a rain delayed harvest and lower test weights," one Kansas dealer said.
The top wheat state of Kansas continues to get hit with rain, and more is expected over the next week, private forecasters said. Rain during harvest not only stalls combines but damages the quality of the wheat.
However, some elevators backed off their bids, anticipating movement to pick up soon. In Lincoln, Nebraska, and Colby, Kansas, spot bids fell a nickel overnight.
US Gulf track bids were also 5 cents lower amid quieter exporter demand.
Early harvest reports from Kansas were mixed, with test weights and yields all over the board, dealers said.
Yields ranged from roughly 30 bushels per acre to 50 bushels, with test weights running in the high 50s to low 60s lbs per bushel, the Kansas wheat growers association said early this week.
The average yield for Kansas wheat was 48 bushels per acre in 2003.
Millers begin discounting wheat with test weights below 58 lbs per bushel.
KCBT wheat futures were called to open 1 to 2 cents per bushel higher on concerns about a rain delayed harvest and a better-than-expected weekly export sales tally.
The US Department of Agriculture said early Thursday that 590,500 tonnes of US wheat were sold for export late week, which was above trade estimates for 450,000 to 550,000 tonnes.
Overnight export business featured Taiwan millers setting a tender for Friday to buy 43,520 tonnes of US wheat. Also, Japan bought 93,500 tonnes of wheat at its weekly tender, with all but 12,500 tonnes US origin.