US Plains HRW Wheat-Basis flat but rising futures spur light farmer sales

CHICAGO, Jan 28 (Reuters) - Basis bids for hard red winter wheat held steady in the southern U.S. Plains on Wednesday, but farmer selling picked up in a few areas as K.C. wheat futures reached two-month highs, brokers said.

• Temperatures were rising in the Plains after a massive winter storm crossed the region over the weekend, dumping snow and ice that snarled grain deliveries while benefiting dormant wheat crops.

• "Winter wheat in many areas from Kansas southward is benefiting from a boost in topsoil moisture, where accumulations of wintry precipitation have begun to melt," the U.S. Department of Agriculture said in a daily weather note.

• K.C. March HRW wheat futures KWH26 settled up 9-1/2 cents at $5.42-1/4 a bushel after reaching $5.48-1/2, the contract's highest since November 18, buoyed by short-covering and a drop in the U.S. dollar this week to near four-year lows. WHE/C

• A softer dollar tends to make U.S. grains more competitive globally.

• Premiums for HRW wheat shipped by rail to or through Kansas City rose by 2 to 7 cents a bushel for wheat with 11.8% through 12.2% protein, while premiums for other grades were unchanged. KCBT/SCA

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