Hard red winter wheat spot basis bids in the US Plains were steady to firmer Friday after dropping off earlier in the week, merchants said. The basis was a penny a bushel higher in several locations around Kansas and Oklahoma, and 4 cents higher for the Gulf track market. The basis was up a penny a bushel at the Galveston, Texas, Gulf Port. And after sliding more than a dime a bushel over the last week due partly to an influx of rail cars, protein premiums for wheat to and through Kansas City were steady to 1 cent higher, with upper protein levels commanding the gains.

Cash traders said some mill demand and a slowdown in country movement led to the steady to firmer tone.

The Kansas City Board of Trade futures market settled 3/4 to 3-1/2 cents higher Thursday, with March up 3-1/2 cents at $3.28-3/4 per bushel and May up 1-1/2 cents at $3.17-1/4.

The market was called to open mixed to 1 cent lower Friday, with little news out there to extend Thursday's gains.

Wheat traders were taking note of the EU's hike in an export subsidy this week to 6 euros per tonne from last week's 4 euros. However, the amount of wheat offered into export channels was light, diminishing the bearish impact of the change.

Copyright Reuters, 2005