CENTRAL CITY, Neb. (Dow Jones)--US cash grain prices finally stabilized
somewhat Wednesday, registering small gains in both futures and interior basis
values.

  Daily domestic basis appreciated by an average of 1/2 cent per bushel for
soybeans and hard red winter wheat, 1 cent for cash corn, 1 1/4 cents for
spring wheat and 2 1/4 cents for SRW wheat.

  Experts attributed a slowdown in country movement for supporting some
premiums, as growers have actively resisted selling at lower prices which have
dominated most market action thus far in 2007.

  "Activity in the cash market remains light," reported Kevin Kjorsvik with
Benson Quinn Commodities. "Farmer selling has dried up, due to the break in the
board."

  With cash prices for all classes of US wheat now at their lowest level in
about 3 months, receipts of wheat at the primary HRS terminal of Minneapolis
fell to only 122 carlots Wednesday, down 18% from year-ago volume.

  Additional support for wheat basis stemmed from improved export demand, with
Iraq purchasing an estiamted 25 million bushels of US wheat for near-term
delivery overnight.

  "In addition, Iraqi officials said they want to buy more than 11 million
bushels a month, much of which is likely to come from the U.S.," noted Bryce
Knorr of Farm Futures.

  Like basis, most grain futures markets also exhibited resilience overnight,
with cash contracts of corn, soybeans and wheat each closing steady to about 2
cents higher. Mar oats finished e-CBOT trading with losses of around 1 cent,
while the rice market was unchanged.

  Cash price indices for US grain maintained by the Minneapolis Grain exchange
currently stand at approximately $6.07 3/4 for soybeans, indicating a national
average basis level of -56 3/4 cents relative to Mar contracts at the CBOT.
National cash prices also average $3.23 1/2 for corn (-31 cents basis vs. Mar
CBOT corn), $4.34 1/2 for HRS wheat (-39 cents vs. Mar MGE wheat), $4.31 for
HRW wheat (-40 1/2 cents vs. KCBT Mar wheat), and $3.88 1/4 for SRW wheat (-64
3/4 cents versus CBOT Mar wheat).


  CROP WEATHER


  The Joint Ag Weather Facility at USDA said cold air - accompanied by
scattered rain and snow showers -  was beginning to overspread the Pacific
Northwest Wednesday, "signaling a significant pattern change."

  The agency said mild, dry weather currently prevailed in most other areas
however, favoring off-season fieldwork and cash grain movement, except in the
eastern Corn Belt, central Gulf Coast and southern Mid-Atlantic region where
activities have been hampered by muddy conditions.

  JAWF forecasters said sharply colder air from the PNW will quickly spread
eastward Thursday, bringing another round of snow and gusty winds to the
storm-ravaged central High Plains.

  "On Friday, showers and thunderstorms will develop along and east of a line
from central Texas to the Great Lakes region, then progress eastward during the
weekend," forecast USDA agricultural meteorologist Brad Rippey. "Storm-total
rainfall may range from 3.00 to 5.00 inches from eastern Texas to the lower
Ohio Valley."