Basis bids for hard red winter wheat in the US Plains were unchanged on Friday in lackluster dealings. Farmers were holding tight to wheat supplies in hopes of higher prices tied to the very poor conditions of the new crop. Winter wheat continued to struggle with detrimental weather conditions and there was increased talk of the possibility of high abandonment rates if farmers do not see conditions improve significantly by spring.

The dry conditions, coupled with recent warm temperatures were severely stressing the new winter wheat crop in those key growing states. According to data compiled by US Department of Agriculture meteorologist Brad Rippey, since the 1950s there have been only two years in which US winter wheat abandonment reached or exceeded a quarter of the crop.

In the 1988-89 season abandonment was 25 percent, and in 2001/02 it was 29 percent. And current US winter wheat conditions are worse than those observed then at this point in the season, and the lowest on record for this time of year, said Rippey. Still, the International Grains Council on Friday forecast global 2013/14 wheat production to rise 4 percent on the year. Last month the IGC pegged global 2012/13 wheat output at 654 million tonnes. Protein premiums for railcar wheat to and through Kansas City were unchanged. Kansas City Board of Trade March wheat futures ended Thursday at $9.12.

Copyright Reuters, 2012