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…
Category Archives: 2017
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…
All eyes on wheat spreads
Wow! Kansas City domestic wheat exploded higher today absorbing all of the KWZ-KWH roll plus another 8+ ct/bu. HRW gulf market saw better bids for 12% protein today and consumers are asking if there will be 12% protein available the balance of the year. SRW domestic market was focused on the deliveries and the cif…
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…
November 15, 2017
Cash basis values were higher across all markets today. Perhaps the lower futures market helped buy some demand and/or pricing of wheat in the domestic and export markets. Regardless of the reason the basis was firmer with reports of better bids and a few trades today at the offer side of the market. HRW gulf…
Friday’s Market
The market has run cash basis values to such high levels that shippers are starting to take notice as fall harvests finish and buyers are saying at these values we’ll wait to see if there is more selling in the new calendar year. The function of the market was to take some cash carry out…
Firm US domestic wheat premiums
The cash wheat markets continue to have a firm tone. The HRW domestic market was on fire today, with 11.2% protein cars trading at a record high +150 KWZ and 12.5% protein cars trading +245 KWZ; mills are finding it harder and harder to live off the spot market; offered volume is small and demand…
