Basis bids in the US Plains were mostly steady on Tuesday as farmers held tight to old-crop supplies and demand slackened. Weaker mill demand was noted due in part to the demise of Hostess Brands Inc, which has shut down more than 30 bakery plants around the United States and is in the process of liquidating assets that include the Wonder Bread brand and other bread and snack product brands.

Meanwhile, drought and warm weather were combining to continue to stress the new wheat crop. Farmers were waiting for higher prices to sell the remainder of their old-crop wheat due to very poor field conditions and expectations for higher futures prices.

Copyright Reuters, 2012