Reply
Honored Advisor
Posts: 7,659
Registered: ‎07-18-2011
0

wheat market

[ Edited ]

Been looking at the July December kcwheat spread........  biggest negative spread in the last 6 years.   market is offering nearly 40 cents more for new crop wheat along witha basis that is offering a little more.......

Doesn't that say that the 2016 wheat sitting in the bunker is poor quality?

 

Ever notice that the producer owner of that wheat is the only one who knows is tied to the year it was produced?

 

Chances are it will get blended into 17 wheat and sold as such..that is a pretty good markup to pocket along with a year of storage.

 

What elese does the spread say?