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SRW basis crazy

After the bloodbath in SRW basis of recent years we've actually got bids as high as .25 over WN in C IN

 

"course with a .60 discount to CN it isn't even hitting the botttom of a bin- going right to the feed mills.

 

 

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6 Replies

Re: SRW basis crazy

Any reports of yeild and quality on SRWW?

 

I hear there is some cutting as far north asw Indy.

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Senior Advisor

Re: SRW basis crazy

Hearing about high basis levels in HRW and some bidding wars brewing. Another strain o news is that farmers that got pounded in Kansas by low yields and looking at further disasters in dryland corn and DC beans (for insurance?) that farmers are in no mood to sell at this point.

 

I think there are some deep undercurrents in this market that may make the whole experience hazardous in the end. At this point I discount acres for now.

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Senior Contributor

Re: SRW basis crazy

I'm in the HRW area, and I don't consider a dollar under the Kansas City Board as a high basis level.  Considering one of the local elevators has 2009 HRW still in a ground pile, I''m not really holding my breath for any basis improvement.  The reason most who got pounded in Kansas aren't selling is because they had extremely high protein in their wheat.  They are not being paid a protein payment, so they are hoping at some point to get a protein payment. 

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Senior Advisor

Re: SRW basis crazy

My info is out of SC Kansas and believe it to be reliable.

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JonSCKs
Veteran Reader

Re: not as firm as HRW.

Pull up a HRW basis map if you have access.. it is pretty much following the harvest.  Currently our local bids are minus $0.15 and minus $0.05.  A little over a dollar better than this time last year.  In fact.. looking it up.. we jumped up to minus $1.15 from a minus $1.30 this week last year.  So it's holding pretty steady at a dollar better than a year ago.

 

On the map I am looking at the wider basis are in areas where harvest has not started yet.

 

I suspect that the building boom in storage is going to keep a lot of bushels out in the country this year.  Terminal bids at this point are actually weaker then our country bids.. something will have to give.. given the reports today.. the lady who writes the checks reported.. "no interest" in selling grain at these levels.

 

Also HRW Wht buyers are going to have to outbid feeders to keep it out of the bunk.

 

It doesn't matter to me as I'm out of 2011 inventory anyway.

 

fwiw.

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Highlighted
Senior Contributor

Re: not as firm as HRW.

They started combining wheat up as far north as the Colby/Atwood area this week.  According the the Agweb site, Ludell's bid for HRW is 77 under.  Around Colby, the basis bids are from the 50's to upper 60's under.  The elevators up this way have a lot of 2010 wheat left.  I read a blog today that said 33% of the corn free stocks are located in Nebraska and Iowa.  Maybe a high percentage of the free HRW stocks are located in northern KS and southern NE? 

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