US Plains HRW Wheat-Basis bids steady-higher as futures plunge

ReutersFeb 27, 2025 7:44 PM

CHICAGO, Feb 27 (Reuters) - Spot basis bids for hard red winter wheat were steady to higher around the southern U.S. Plains on Thursday in muted trading as futures prices fell sharply, grain merchants said.

Farmer sales were slow as futures declined for a fourth straight day and as growers waited for higher prices and more clarity on yield prospects before selling.

Wheat crops in many areas of the Plains are in need of additional precipitation following a stretch of dry weather, merchants said.

Drought expanded in areas of the southern Plains in the latest week, according to U.S. drought monitor data. In Texas, 23% of the crop was under moderate drought or worse as of February 25 along with 19% of Oklahoma's crop, up from 6% and 11%, respectively, in the previous week, the data showed.

Grain merchants continued to roll their basis bids to be tied to the K.C. May HRW futures contract KWK25 from the March contract KWH25 ahead of March futures' upcoming delivery period.

The U.S. Department of Agriculture (USDA) on Thursday projected U.S. farmers would plant 47.0 million acres of wheat in 2025, up from 46.1 million last year.

In a separate report, the USDA said exporters sold a net 269,008 metric tons of old-crop U.S. wheat in the week ended February 20, down from 532,674 tons and below trade estimates. Old-crop HRW sales totaled 82,990 tons, down from 172,442 tons the prior week. EXP/WHE

Protein premiums for HRW wheat shipped by rail to or through Kansas City were unchanged for all protein grades. KCBT/SCA

K.C. March hard red winter wheat futures KWH25 settled 13-3/4 cents lower at $5.71-1/4 per bushel, while May futures KWK25 last traded 12-1/2 cents lower at $5.86. Both contracts hit one-month lows during the session.

Basis values are quoted against futures in cts/bu:

	Current			Previous			Cash
	basis			basis			price
KANSAS
Wichita	-32	+	H	-32	+	H	$5.39
Newton	-61	+	H	-61	+	H	$5.10
Goodland	-75	+	H	-80	+	H	$4.96

TEXAS
Gulf track*	95	+	K	95	+	K	$6.81
Galveston	100	+	H	100	+	H	$6.71

OKLAHOMA
Enid	-35	+	H	-35	+	H	$5.36
Catoosa	5	+	K	15	+	H	$5.91

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

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.