US Plains HRW Wheat-Gulf basis weakens, protein premiums steady-firmer

CHICAGO, Feb 3 (Reuters) - Basis bids for hard red winter (HRW) wheat were unchanged at elevators in the Southern Plains on Monday, but the spot basis fell at the U.S. Gulf, reflecting sluggish demand from exporters.

The Gulf track basis for railcars of HRW wheat fell to 105 cents per bushel above the K.C. March KWH25 wheat futures contract, down from 125 cents over futures last week.

Protein premiums for HRW wheat shipped by rail to or through Kansas City rose by 8 cents a bushel for wheat with 11.6% and 11.8% protein. Premiums for other grades were unchanged. KCBT/SCA

Farmer selling slowed last week as growers waited to learn more about production prospects for dormant winter wheat crops. The U.S. Department of Agriculture in a monthly state crop report released on Monday rated 50% of the winter wheat in top producer Kansas in good to excellent condition, up from 47% a month earlier.

K.C. wheat HRW wheat futures ended higher in a volatile session. The March contract KWH25 rallied from early weakness and matched last week's three-month high of $5.90-3/4 a bushel before settling at $5.85-3/4, up 6-1/2 cents for the day.

Wheat, corn and soybean markets rallied on news that U.S. President Donald Trump suspended his threat of steep tariffs on Mexico. After the close of the grain markets, tariffs ordered against Canadian goods were also paused. GRA/

Basis values are quoted against futures in cts/bu:

NOTES:

H = March, K = May, N = July, U = September

Z = December; UNQ = Unquoted bids

0 = Sp Option price; NC = No comparison

= No. 1 12% hard winter wheat, rail bids

= Ordinary protein, rail bids

LINKS:

K.C. HRW wheat protein scales KCBT/SCA

U.S. weekly wheat crop progress US/WHE

U.S. forward basis WHEAT/BASIS

U.S. Midwest cash grain PM GRA/PM

U.S. CIF Gulf Grain GRA/C

U.S. FOB Gulf Grain GRA/F