US Plains spot hard red winter wheat basis bids were steady on Friday, with merchants reporting a lack of farmer selling interest. The quiet country market was due in large part to the setback in wheat futures prices at midweek and expectations for further declines Friday, merchants said.
Wheat prices have been following soybean futures, and potentially beneficial rainfall tied to Hurricane Dennis was expected to weigh on bean prices Friday and provide spill over pressure on wheat prices.
KCBT futures prices closed 4-1/2 cents lower to 2 cents higher on Thursday, with the July contract at $3.37-1/2, up 2 cents, and the September up 1-3/4 cents at $3.44-3/4.
Also seen as bearish for wheat prices was talk from trade sources that Informa Economics has pegged 2005 US wheat production at 2.232 billion bushels. That's above the US Agriculture Department's current estimate for 2.140 billion.
USDA will release its July crop production report early Tuesday.
Export news was slightly bullish Friday as the USDA reported US wheat export sales last week totalled 629,800 tonnes (old crop), above estimates for 350,000 to 550,000 tonnes.
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