January 2, 2018

U.S. wheat futures found support from the weekend’s sub-zero temperatures in the central & northern plains and Midwest, as the threat of winterkill was debated today, with nearby Chicago closing up 6.50 cents, Kansas City up 7.50 cents, and Minneapolis tagged along to close up 3.25 cents. The cash markets have been supporting the Mar/May…

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The drop in futures to new contract lows is starting to price some business. HRW exporters saw Algerian shorts bidding today and we expect something traded since the bid/ask was only 5 ct/bu. Domestic mills have been pricing old and new crop cash business for HRW, but Kansas City spot basis was off today as…

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Cash basis was on fire in domestic HRW business, although it wasn’t shown in the spot close, 11.1% to 11.3% protein was bid +165 KWH8, up 35 ct/bu.  Domestic mills and resellers are bidding after disappointing applications to December procurement contracts. The gulf market closed unchanged, but looking for offers in most positions. The domestic…

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Traders are watching the Z-H spread in all 3 wheat markets and the biggest unknown is why WZ-WH traded out to -19.5 when cash basis is so far above DVE for SRW and HRW. Deliveries are unlikely on MGEX with the spread at -17 ct/bu, KCBT expects delivery of 10.5% protein to help insure a…

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