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Spot basis values for hard red winter wheat held steady Thursday, with wheat movement staying slow amid only limited domestic demand, though the market was taking note of improved exports.

Protein premiums for railcar wheat to and through Kansas City showed further weakness, dropping 1 cent a bushel for 12.40 through 12.80 percent protein.

Dry weather continued to stress the new crop and reports of wheat diseases, including leaf rust and root rot-type symptoms, were showing up in several areas of Oklahoma, according to Oklahoma State University wheat expert Bob Hunger.

On the export front, the US Department of Agriculture on Thursday said export sales of US wheat last week totalled 1,397,300 tonnes, a figure well above trade estimates for 350,000 to 500,000 tonnes. The sales number included a large sale of US wheat to Iraq.

USDA's November crop report issued Thursday also had good news on exports as the agency pegged 2005/06 US wheat ending stocks at 530 million bushels, lower than the average of analysts' estimates for 537 million bushels.

Export activity overnight included Japan's purchase of 142,000 tonnes of wheat, with 86,000 tonnes coming from the United States. Also, Jordan postponed a tender to buy 100,000 tonnes of wheat following the series of bomb blasts in its capital Amman.

Futures traders at the Kansas City Board of Trade called hard red winter wheat futures prices to open steady to mixed Thursday, possibly weighed down by bearish corn and bean data.

The market settled 2 to 6 cents higher Wednesday, with December at $3.70-3/4 per bushel, up 6 cents, and March at $3.75 for a gain of 4-1/4 cents.

Copyright Reuters, 2005


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