US Plains spot hard red winter wheat basis bids were mostly steady on Wednesday morning as clear weather allowed widespread combining in Kansas after recent rain delays, merchandisers said. Harvest movement was building, but farmer selling was scattered and light overall.
"We bought some wheat yesterday on the rally, but when it went back down it got quiet again," said a merchandiser in central Kansas, referring to Tuesday's midsession rally in wheat futures that faded by the close.
Basis levels were nearly unchanged, with Hutchinson, Kansas, one of the few spots showing a change as one basis bid there was raised 5 cents.
The quality of the newly cut wheat was about average, with test weights dropping a bit from early samples after recent rains. Protein levels were improving in some Kansas locations, but overall the crop will probably rate an "average" in that regard, merchandisers said.
"We're seeing some pockets of protein out there, not as high as last year and not as widespread, but about average," said a Kansas merchandiser.
Said one Oklahoma merchandiser of the protein content, "I don't see it being a major issue at this point."
Harvest crews should make good progress this week, a private forecaster said.
"There will be a few delays in the west and north (portions of the Southern Plains) late this week, but probably nothing important," said Meteorlogix forecaster Joel Burgio.
Burgio said there were a few showers in the Plains overnight with amounts generally under 0.50 inch, and temperatures remained warm to hot with highs in the upper 80s to low 90s (Fahrenheit).
Hard red winter wheat futures were expected to open 2 to 3 cents per bushel higher Wednesday, led by Chicago soybean futures which were called higher after rallying again in overnight electronic trading, said pit brokers at the Kansas City Board of Trade.
KCBT July wheat closed 4-1/2 cents lower Tuesday at $3.38-1/4 per bushel, but gained 3-3/4 cents in overnight trading. Pit brokers said harvest hedge pressure could push futures lower after initial gains on Wednesday.
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