US Plains HRW Wheat-Basis steady-firm; drought worries limit farmer sales

CHICAGO, April 29 (Reuters) - Basis bids for hard red winter wheat were steady to firmer in the southern U.S. Plains on Wednesday and grain sales by farmers remained thin, reflecting uncertain harvest prospects following sustained drought in much of the region, dealers said.

• However, some farmers have begun selling small amounts of wheat for 2027/28 delivery as deferred KWN27 futures set contract highs, an Oklahoma merchandiser said.

• K.C. wheat futures closed mostly higher on Wednesday, and all months other than the nearby May and July contracts set life-of-contract highs before paring gains.

• Wheat futures have surged this week on worries about dry weather hurting yield prospects in the U.S. Plains, along with the potential for smaller harvests compared to last year in Australia and Canada. GRA/

• K.C. May wheat KWK26 settled down 6-1/2 cents on Wednesday at $6.90-1/4 per bushel while most-active July futures KWN26 ended up 2-1/2 cents at $7.04-3/4 a bushel.

• More locations rolled their wheat basis to the K.C. July KWN26 futures contract as the May contract KWK26 nears its May 14 expiration.

• The number of contracts registered for delivery against K.C. wheat futures rose to 583 contracts on Wednesday afternoon, up from just 22 lots a day earlier, CME Group data showed, indicating the likelihood of deliveries against May futures on first notice day on Thursday.

• Protein premiums for railcar HRW wheat to and through Kansas City rose by 1 cent per bushel for wheat with 11.8% through 12.4% protein, by 7 cents for wheat with 12.6% through 13.0% protein and by 2 cents for wheat with 13.2% through 13.8% protein. 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 = 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