HRW wheat bids holding steady

18 Dec, 2007

US Plains hard red winter wheat basis bids were holding steady on Monday, with little movement noted as the holiday approached, grain merchants said. Demand was focused on higher protein supplies as premiums for rail car wheat to and through Kansas City gained 3 to 15 cents a bushel for high protein wheat.
A weekend snow storm brought more moisture to the Plains, which should benefit the new crop. Some western areas were still dry and in need of more moisture, however. Many country players were keeping a close eye on futures prices at the Kansas City Board of Trade, which ended mixed on Friday, with new-crop months falling and nearby contracts rallying.
The bellwether March contract ended up 16-1/4 cents at $9.99-1/4 on Friday. The May ended up 9-3/4 cents at $9.89, while new-crop July ended down 17-1/4 cents at $8.14-3/4. Wheat futures were called 15 to 20 cents higher on Monday in a technical surge after an overnight rally.
Wheat prices have nearly doubled since the start of the year, and industry officials said crop worries and strong global demand would keep prices firm until a clearer picture emerges in January about US plantings.

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