US Plains hard red winter wheat basis bids were mostly steady on Monday with harvest in the top US wheat growing state still slowed by wet weather. The basis dropped 15 cents a bushel at Salina, Kansas, and Hutchinson, Kansas, and talk of high moisture and low test weights worried wheat dealers.
A report issued Monday by wheat experts in Kansas, the top US wheat-growing state, confirmed that early harvest activity was finding low test weights and poor yields.
"This whole issue of quality is becoming an issue," said one Kansas merchant. "It's just gone totally to hell." An Oklahoma merchant echoed the sentiment: "We're so sick of this. It's just awful. I don't know if we're ever going to get any wheat out of the fields or not. It's not a good year for the producers, or the elevators or the end user."
Wheat futures at the Kansas City Board of Trade saw a setback Friday and were expected to continue that retreat on Monday with better harvest weather in the forecast.
KCBT July wheat closed down 3-3/4 cents at $5.96-1/4 per bushel on Friday, backing down from Thursday's 11-year high of $6.18. September wheat ended down 3-1/2 cents at $6.09, while other deferred contracts ranged from 5 cents lower to 4 cents higher. The market was expected to decline 2-3 cents a bushel on Monday.
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