March 6 (Reuters) – Basis bids for hard red winter wheat
were steady to firmer on Wednesday in mostly routine dealings.
* The Gulf basis rose 3 cents a bushel while other locations
were unchanged.
* There was some market chatter of U.S. wheat being used to
substitute for high-priced and hard-to-find corn for ethanol
production, mostly for Eastern U.S. ethanol plants.
* Protein premiums for railcar wheat to and through Kansas
City were unchanged.
* News of consolidation of ConAgra and Horizon milling
operations had some wheat growers speculating there might be an
increased market for identity-preserved, specialty wheat grown
on a contract basis.
* Improved wheat conditions led crop forecaster Lanworth on
Wednesday to raise its forecast for U.S. wheat production by 6
percent. The group cited recent precipitation in the southern
and central Plains. Lanworth said it expects the 2013/14 U.S.
wheat harvest to be 2.026 billion bushels, up from its outlook
for 1.910 billion bushels issued two weeks ago.
* Kansas City Board of Trade March wheat futures
settled at $7.36-1/4 a bushel and the May settled at
$7.45.
(Cash prices calculated against the most recent settlement)
KANSAS
Wichita -5 + K -5 + K 7.40
Newton -5 + K -5 + K 7.40
Goodland -45 + K – 45 + K 7.00
TEXAS
Gulf track* +1.20 + K + 1.17 + K 8.65
Galveston** +50 + K + 50 + K 7.95
OKLAHOMA
Enid 0 + K 0 + K 7.45
Catoosa +45 + K + 45 + K 7.90
K= May HRW wheat futures on the Kansas City Board of Trade
NA = Unquoted bids, 0 = Option price.
* = No. 1 12 pct hard winter wheat for March delivery
** = ordinary protein, rail bids for March delivery.
LINKS:
* U.S. weekly wheat crop progress
* U.S. forward basis click on:
* U.S. Midwest cash grain PM
* U.S. CIF Gulf Grain
* U.S. FOB Gulf Grain
(Reporting by Carey Gillam in Kansas City)
