CHICAGO, May 6 - Basis offers for hard red winter wheat in the southern U.S. Plains remained unchanged on Wednesday while merchandisers kept a close watch on short-term weather risks to crops already under drought stress.
A daily U.S. Department of Agriculture weather report indicated that frost and freezes were expected on Thursday morning across the Plains, possibly reaching as far south as the northern panhandle of Texas. The anticipated cold spell could endanger winter wheat that is in the heading stage of development, after fields have been coping with a persistent drought, a trader said.
Concerns about drought damage had pushed Kansas City hard red winter wheat futures to multi-year highs last week. On Wednesday, benchmark K.C. July wheat futures closed down 3 cents at $6.87 a bushel.
Market participants are also preparing to evaluate the weekly U.S. Department of Agriculture export sales report on Thursday to determine whether the strength observed in futures has impaired export demand.
Basis values (quoted against futures in cents per bushel)
| Location | Current basis | Previous basis | Cash price |
|---|---|---|---|
| KANSAS - Wichita | -43 + N | -43 + N | $6.47 |
| KANSAS - Newton | -68 + N | -68 + N | $6.22 |
| KANSAS - Goodland | -90 + N | -90 + N | $6.00 |
| TEXAS - Gulf track* | +120 + N | +120 + N | $8.10 |
| TEXAS - Galveston** | +100 + N | +100 + N | $7.90 |
| OKLAHOMA - Enid | -30 + N | -30 + N | $6.60 |
| OKLAHOMA - Catoosa | -15 + N | -15 + N | $6.75 |
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.
Merchandisers and traders are operating with limited room for error as weather forecasts point to a cold snap that could threaten crops already weakened by drought. Market attention is concentrated on whether the anticipated freezes materialize and how that will influence both domestic basis bids and export-related demand measured by USDA weekly sales figures.
Until those indicators are resolved, basis levels in the southern Plains held steady, reflecting a market cautious about near-term weather volatility yet awaiting clearer signals from crop conditions and export activity.