US Plains HRW Wheat-Basis flat, futures rally spurs farmer sales
CHICAGO, July 10 (Reuters) - Basis bids for hard red winter wheat remained flat in the southern U.S. Plains on Friday as surging prices drove some farmers to sell grain, merchandisers said.
Wheat futures jumped on global supply concerns after leading exporter Russia temporarily stopped shipping through a navigable waterway called the Don-Azov channel, grain industry sources said.
K.C. September wheat KWU27 was up more than 3% at $6.75 per bushel in afternoon trading and reached the highest level since May 27.
Farmers booked modest sales to take advantage of the rally, merchandisers said. They realized they would need to sell wheat to make space in storage bins before the autumn corn and soybean harvests, one merchandiser said.
The U.S. Department of Agriculture pegged total U.S. wheat production for 2026-27 at 1.536 billion bushels in a report, down from its June estimate of 1.543 billion. The production figure would represent the nation's smallest wheat harvest since the 1970/1971 marketing year.
Output of hard red winter wheat was at 471 million bushels, down from 497 million last month, according to the report.
Basis values are quoted against futures in cts/bu:
Current |
Previous |
Cash |
|||||
basis |
basis |
price |
|||||
KANSAS |
|||||||
Wichita |
-34 |
+ |
U |
-34 |
+ |
U |
$6.41 |
Newton |
-59 |
+ |
U |
-59 |
+ |
U |
$6.16 |
Goodland |
-65 |
+ |
U |
-65 |
+ |
U |
$6.10 |
TEXAS |
|||||||
Gulf track* |
+115 |
+ |
U |
+115 |
+ |
U |
$7.90 |
Galveston** |
+100 |
+ |
U |
+100 |
+ |
U |
$7.75 |
OKLAHOMA |
|||||||
Enid |
-25 |
+ |
U |
-25 |
+ |
U |
$6.50 |
Catoosa |
-25 |
+ |
U |
-25 |
+ |
U |
$6.50 |
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. CIF Gulf Grain GRA/C
* U.S. FOB Gulf Grain GRA/F
