US Plains HRW wheat bids steady

19 Dec, 2007

US Plains hard red winter wheat basis bids were mostly steady on Tuesday though some firming was noted in Kansas locations. Truck wheat into Kansas City was a dime a bushel firmer while wheat into Salina was 2 cents firmer. Merchants said spot demand was driving the increases, but overall, end-users were well-stocked.
Protein premiums for rail car wheat to and through Kansas City were holding steady amid active offerings. Volatility in futures prices at the Kansas City Board of Trade was a source of much discussion in the country as new-crop contracts declined. Farmers have already sold much of their old crop.
On Monday, the benchmark March wheat contract also saw a setback, ending down 13-3/4 cents at $9.85-1/2, while the May ended down 9 cents at $9.80. New-crop July ended down 19 cents at $7.95-3/4 on Monday.
Futures were called steady to 2 cents higher on Tuesday. On the export front, Japan's Agriculture Ministry issued a tender to buy 285,000 tonnes of wheat this week from the United States and Canada through a regular tender, while a group of South Korean flour millers issued a tender to buy 22,000 tonnes of US No 1 wheat, traders said on Tuesday.

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