US Plains HRW Wheat-Basis steady as traders keep sharp eye on drought concerns
CHICAGO, March 19 (Reuters) - Basis bids for hard red winter (HRW) wheat were steady in most markets in the southern U.S. Plains on Thursday in muted trade, as traders continued to assess weather risks to the crop, merchandisers said.
Protein premiums for railcar wheat to and through Kansas City rose 5 cents a bushel for wheat with 11.60 and 12.40 percent protein, but were unchanged for other grades. KCBT/SCA
Farmers generally are being cautious about how much forward contracting they're willing to do for new-crop wheat, given how dry soil conditions are in parts of the U.S. Plains, dealers said.
According to the U.S. Department of Agriculture drought monitor, 55% of the winter wheat in the U.S. is affected by drought for the week ended March 17, steady from the previous week.
On Thursday, K.C. May HRW wheat futures KWK26 settled up 1-1/4 cents at $6.27-1/4 per bushel. GRA/
Basis values are quoted against futures in cts/bu:
| Current |
|
| Previous |
|
| Cash |
| basis |
|
| basis |
|
| price |
KANSAS |
|
|
|
|
|
|
|
Wichita | -58 | + | K | -58 | + | K | $5.69 |
Newton | -83 | + | K | -83 | + | K | $5.44 |
Goodland | -90 | + | K | -90 | + | K | $5.37 |
|
|
|
|
|
|
|
|
TEXAS |
|
|
|
|
|
|
|
Gulf track* | 115 | + | K | 115 | + | K | $7.42 |
Galveston | 100 | + | K | 100 | + | K | $7.27 |
|
|
|
|
|
|
|
|
OKLAHOMA |
|
|
|
|
|
|
|
Enid | -30 | + | K | -30 | + | K | $5.97 |
Catoosa | 15 | + | K | 15 | + | K | $6.42 |
NOTES:
H = March, K = May, N = July, U = September
Z = December; UNQ = Unquoted bids
0 = Spot 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
