Basis bids for US Plains hard red winter wheat held steady Monday as the market was quiet amid the fall harvest and winter wheat seeding by price-conscious producers. Protein premiums for railcar wheat to and through Kansas City were 2 cents a bushel lower for ordinary and 11.00 percent protein wheat, but unchanged otherwise.
Railcar delays continued to be a problem for some trying to ship wheat to the Gulf. For the first time since 1996, North Dakota this year produced more wheat than Kansas, typically the top US wheat-growing state, the North Dakota Wheat Commission reported.
North Dakota produced an estimated 300 million bushels of wheat, while Kansas farmers produced 283.8 million bushels, and the production value of North Dakota's 2007 wheat crop is likely to set a new record of nearly $1.75 billion if USDA's average farm price projection of $5.80 is achieved, the commission said.
Benchmark December ended Friday up 9-3/4 cents at $9.29-1/4 per bushel after soaring to a new all-time high of $9.49-1/2. March ended up 24-1/2 cents at $9.30-3/4 after surging to a new contract high of $9.36-1/4. Then, in overnight action, March hit a new high of $9.44-1/4.
New-crop July, a contract many producers keep an eye on, hit a new contract high of $7.02 and ended up 10-1/4 cents at $6.89 on Friday. The market was expected to see more gains Monday, with some traders calling prices to open up 10 to 15 cents.
Support remained tied to tight stocks of world wheat. A Statistics Canada survey due Thursday is expected to confirm earlier projections of a small wheat crop there.
Meanwhile, world demand has been staying strong despite record high prices for wheat. On Monday, there was news Morocco's state grains agency ONICL will launch a tender on October 31 to buy 260,000 tonnes of soft wheat for delivery in November-December. Morocco has stepped up wheat imports this year to compensate for a drought-shortened domestic crop. South Korean flour millers issued tenders to buy 73,000 tonnes of US No 1 wheat.
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