Cash basis bids for hard red winter wheat in the southern US Plains mostly held steady on Wednesday and farmer selling was at a near standstill one day after the Christmas holiday, dealers said. The basis at Salina, Kansas, firmed by 5 cents. Producer offerings of wheat stalled as Kansas City Board of Trade wheat futures fell to a five-month low on Monday. Many growers have completed their sales for 2012, dealers said.

Cold temperatures in the region were raising concern about winterkill damage to the wheat crop, which has already been stressed by dry conditions. Temperatures in north-west Kansas were in the single digits Fahrenheit (minus 12 to minus 17 Celsius) on Wednesday morning.

The Commodity Weather Group reported sub-zero temperatures from parts of Colorado into the Northern Plains in the past two days, but said protective snowpack would limit any crop damage. However, CWG said, a few spots in Colorado and western Kansas may incur patchy losses due to thinner snow cover. Kansas City Board of Trade March wheat futures ended Monday at $8.44-1/2 per bushel.

Copyright Reuters, 2012