Spot basis bids for hard red winter wheat in the US Plains were steady to firm on Monday as country movement remained slow despite some rain delays to the harvest, wheat merchants said. Basis bids firmed by 5 cents in Wichita and Topeka, Kansas, and were up a penny in Goodland, Kansas. Bids also rose 2 cents in Catoosa, Oklahoma.
Gulf track bids remained non-existent for June delivery but climbed to 74 cents over July futures for July delivery. The harvest was nearly complete in Oklahoma and southern portions of Kansas but recent rain delays have kept farmers on the sidelines in Nebraska and northern Kansas, merchants said.
Clear weather throughout the Plains on Monday will allow rain-soaked fields to dry, although cooler temperatures may slow that process, they said. Combining could resume in some of the wetter areas by this afternoon, they said.
But farmer selling may remain scarce on Monday as highly variable yields following this winter's drought and plenty of available storage space have many farmers waiting for better prices, merchants said.
"Harvest is winding down around this area and nobody's too interested in doing anything. Farmers are bullish with the prices going higher and the elevator guys have got plenty of room," said a western Kansas merchant.
Traders reported good demand from exporters and from domestic millers, who did not have enough coverage as farmers have been storing their newly harvested grain.
Wheat futures at the Kansas City Board of Trade were expected to open 1 to 3 cents per bushel lower on Monday on spillover weakness from Chicago corn and soyabeans, along with drier harvest weather in the HRW belt, traders said.
The overnight trend for KCBT wheat was 3/4 to 4 cents lower, with July down 2-3/4 at $4.77-1/4.
Export business was quiet overnight.