US Plains HRW Wheat-Basis stays steady as cold and drought threaten crops

CHICAGO, May 6 (Reuters) - Basis bids for hard red winter wheat remained flat in the southern U.S. Plains on Wednesday while merchandisers eyed the risk for cold weather to hurt drought-hit crops.

• Frost and freezes were expected on Thursday morning across the Plains, possibly extending as far south as the northern panhandle of Texas, according to a daily U.S. Department of Agriculture weather report.

• The cold snap could threaten winter wheat in the heading stage of development after crops have struggled with a persistent drought, a trader said.

• K.C. hard red winter wheat futures set multi-year highs last week on worries about crop damage from the drought.

• Benchmark K.C. July wheat KWN26 futures settled down 3 cents at $6.87 a bushel on Wednesday.

• On Thursday, traders will assess weekly U.S. Department of Agriculture export sales data to see whether the recent rally crippled export demand.

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