Domestic Soft Red Winter Wheat Basis Explodes Higher

Harvest started up today, but there was not a lot of new information offered. TW down 1 lb/bu after weekend rains but still well above average and #2 grade. Elevator bids continue to work higher as each company tries to compete with their competitor, bids were up 3-5+ ct/bu higher today. Delivered bids to domestic or export markets were unchanged.  Domestic SRW basis exploded 20-30+ ct/bu higher today as mills finally tried to buy wheat for J/A/S, while the CIF barge market closed the gap to +40/+50 ct/bu for J/J, without any reported trades.  The domestic spring wheat market closed 5 ct/bu lower to 20 ct/bu higher, with reports mills will take down time into the July 4th holiday weekend.  The PNW will price Japan tonight and reports are Yemen purchased a cargo SWW today.  Exporters are pushing their bids to buy July shipment, pre-harvest bushels.

First notice day for July deliveries is next Tuesday and there is no evidence we can expect deliveries against KWN0 or WN0.  Cash bids in the delivery markets are above DVE for HRW. It is less likely we’ll see deliveries of SRW on the river after the explosion of values in the domestic market, plus shippers on river should hold excellent quality of new crop to blend with old crop stocks.

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