US hard red winter wheat basis bids were steady to firmer on Thursday, with movement slow and only routine to light demand, merchants said. The Gulf track market was 3 cents firmer, but otherwise the basis was unchanged. Protein premiums for railcar wheat to and through Kansas City were 1 to 2 cents a bushel higher for 11.60 percent protein through 13.20-pro wheat.
Storage was tight and farmers remained reluctant sellers amid low prices, merchants said.
The wheat futures market at the Kansas City Board of Trade is in a consolidation mode, with light gains posted Wednesday. The September contract closed at $3.39, up 1-1/2 cents.
More gains were expected Thursday, with wheat prices following expected gains in corn and soybean futures, with help from a forecast reduction in world wheat production, traders said.
The International Grains Council said Thursday world wheat output was expected to slip to 608 million tonnes in 2005/06 (July-June) from an expected record of 624.4 million in 2004/05. Last month, the IGC forecast 2005/06 wheat output at 604.4 million tonnes.
Some support also may stem from crop tour reports of lower-than-expected yield potential of spring wheat in the US Crop scouts are projecting lower-than-expected yields of spring wheat in top producer North Dakota because of fungal disease.
So far, yield estimates are 6.6 percent lower than last year's tour estimate of 34.9 bushels per acre and 3.6 percent below the five-year tour average of 33.8 bushels.
Weekly export sales were largely seen as market neutral, coming in at 522,900 tonnes for old-crop wheat. That is within the range of trade estimates for 400,000 to 600,000 tonnes.
Export business overnight included Japan's purchase of 105,000 tonnes of wheat, with 80,000 tonnes coming from the United States.
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