By Gary Wulf

  of DOW JONES NEWSWIRES


  SUPERIOR, Neb. (Dow Jones)--Cash prices offered to US growers for their corn
and wheat languished at the lowest levels seen since late April to early May
Friday, following a week in which futures dropped another 20-30 cents a bushel.

  Declines in wheat are being largely linked to seasonal harvest pressure.

  Farm progress market analyst Arlan Suderman notes that the anual hard red
winter wheat harvest progressed into southern areas of the top-producing state
of Kansas, during recent days.

  "Triple-digit heat, with only scattered showers, should allow it to advance
rapidly as we head through the next two weeks," he said. "Yields should improve
as the combines move north, with some of that wheat hitting the open market."

  This week's sell-of in corn has come in conjunction with a turn toward more
favorable growing weather.

  "The US growing season is now in full motion, with very little crop-stress
being reported," said Iowa commodity trade advisor Karl Setzer. "Soil moisture
levels are at adequate levels to sustain the crops, as well."

  While farmgate soybean prices are also off more than 40 cents from a week
ago, the market has actually recovered well from a severe downdraft seen
Monday.

  Domestic grain basis has built up broad gains this week - of about 1 cent per
bushel for most commodities - but as much as 5 cents for soybeans and soft red
winter wheat.

  MF Global market analyst Rich Feltes attributes resilience in the spot
soybean market to, "weekly export sales well in advance of [the] pace needed to
meet USDA's old-crop export forecast, light farmer selling, dwindling processor
soybean stocks and escalating concern over how processors will access soybeans
during [the] final month prior to new-crop harvest."

  US grain futures were firm overnight, leading to cash contract gains of
around 1 cent for corn/soybeans/oats, and 4-5 cents for winter wheat. Nearby
hard red spring wheat futures closed out Globex trading fractionally mixed.

  National cash price indices maintained by the Minneapolis Grain Exchange now
stand at $11.80 3/4 for soybeans, representing an average basis of -33 cents
relative to yesterday's settlement of July CBOT futures. Domestic cash prices
also average $3.75 1/4 for corn (-28 cents basis July CBOT corn), $5.62 for
hard red winter wheat (-57 cents basis KCBT July wheat), $4.54 for soft red
winter wheat (-$1.06 1/4 basis CBOT July wheat) and $6.79 1/4 for hard red
spring wheat (-37 1/4 cents basis MGE July wheat).


  Crop Weather


  Showers and thunderstorms were scattered across the Great Plains and Midwest
again Friday, precipitation which boosted soil moisture supplies for emerged
row crops, but hampered winter wheat harvesting and late-season corn and
soybean planting.

  "Showers and thunderstorms will continue from the southern high Plains
through the Corn Belt, and severe weather - primarily violent winds and large
hail - will remain a threat for the next few days," said USDA agricultural
meteorologist Mark Brusberg. "Meanwhile, hot, dry weather will persist across
the southern Plains and Southeast, under a dominant ridge of high pressure."