US Plains hard red winter wheat basis values were mostly steady on Friday, with some traders taking protection of 20 cents a bushel following a sharp decline in KCBT futures in overnight trading. Some traders were booking wheat in basis-only transactions, with the cash price to be set after the market opens.
"We are taking 20 cents protection," a Kansas dealer said. Kansas City Board of Trade HRW March wheat futures fell 5 cents to $12.19-1/2 per bushel overnight, while May fell 19-1/4 cents to $12.06-3/4.
Traders were expecting liquidation and some profit-taking in dayside trading, with the market still nervous from broker MF Global's $141.5 million loss in the wheat market. MF Global blamed a rogue trader who had substantially exceeded his trading limits for the losses. "There might be others," a trader said. Futures were called to open 15 to 20 cents lower, with traders expecting pressure from news Egypt's General Authority for Supply Commodities bought French wheat at its tender.