US Plains HRW Wheat-Basis steady-firmer; weather in focus

CHICAGO, May 1 (Reuters) - Basis bids for hard red winter wheat were steady to stronger in the southern U.S. Plains on Friday, reflecting demand from domestic flour millers while farmers remain reluctant sellers as they await more clarity on how drought has affected prospects for the 2026 harvest, dealers said.

• Light rain was expected early next week in the central Plains but drought stress is expected to persist in half of the HRW wheat belt, the Commodity Weather Group said in a client note.

• The showers might arrive too late to offer much benefit to the hardest-hit winter wheat in western Oklahoma. "I don't think the rain is going to save it," one merchandiser said.

• Meanwhile, the National Weather Service posted frost advisories through Saturday morning from the Texas Panhandle into northwest Kansas and freeze warnings across central Nebraska.

• The spot basis for wheat improved by 5 cents a bushel at Catoosa, Oklahoma.

• Protein premiums for railcar HRW wheat to and through Kansas City rose by 15 cents per bushel for "ordinary" wheat with less than 11.0% protein, and by 2 cents for wheat with 11.0% and 11.2% protein. Premiums for other grades were unchanged. KCBT/SCA

• K.C. wheat futures ended higher on Friday, hovering near two-year highs set at mid-week. Benchmark K.C. July wheat KWN26 settled up 1 cent at $6.94-1/2 a bushel after reaching $7.18-1/2 this week, the highest on a continuous chart of the most-active contract KWv1 since June 2024.

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