US Plains HRW Wheat-Basis bids flat with little farmer selling

CHICAGO, Oct 1 (Reuters) - Basis bids for hard red winter wheat stayed steady with limited selling at elevators in the southern U.S. Plains on Wednesday, dealers said, as low futures prices discouraged farmers from selling.

• Even farmers eager to sell are holding on to their grain, one dealer said.

• The USDA increased its estimate for hard red winter wheat output to 804 million bushels from 769 million bushels.

• The surprise increase knocked futures prices to contract lows for the second day in a row on Wednesday.

• Warm and dry weather was expected to favor HRW wheat plantings this week, dealers said.

• The winter wheat crop was 17% planted in Kansas as of Sunday, below the average of 30%, according to the U.S. Department of Agriculture. The state's corn harvest was 29% complete, below the average of 42%.

• K.C. December hard red winter wheat KWZ25 ended 2-1/4 cents lower to $4.95-1/2 a bushel.

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. FOB Gulf Grain GRA/F