US Plains HRW Wheat-Basis bids mostly steady on weak demand, lower futures

CHICAGO, April 6 (Reuters) - Basis bids for hard red winter (HRW) wheat were mostly flat in the southern U.S. Plains on Monday, underpinned by weaker futures prices but capped by dull demand, grain merchants said.

• Beneficial rains were expected in much of the drought-hit southeastern Plains over the next 10 days, forecasters said. Far western stretches of the wheat belt could remain stressed as dry conditions have hurt crop conditions this spring.

• The weekly U.S. Drought Monitor reported worsening drought across the HRW wheat belt in the past week.

• The U.S. Department of Agriculture is due to update weekly crop conditions on Monday afternoon. Analysts polled by Reuters expect the USDA to report that 42% of the winter wheat crop was in good-to-excellent condition as of Sunday.

• Weak export demand has weighed on basis values. The USDA said 334,106 metric tons of U.S. wheat were inspected for export in the week ending April 2, down from 386,254 tons a week earlier. The tally included 124,823 tons of HRW wheat HRW-INSP-TOT, down 43% from a week earlier, USDA data showed.

• K.C. May hard red winter wheat KWK26 futures were down 9-1/2 cents near midday on Monday at $6.06-1/4 per 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 = 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