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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