I noticed that the basis improved yesterday on Mill quality HRW Wheat basis..

( https://www.ams.usda.gov/mnreports/dc_gr112.txt )

				PROCESSOR HRW WHEAT US NO 1              

		       Bids          Change (¢/bu)           Basis               Change

Wichita-11%         4.1200              UP 8                -40H                UP 5
Wichita-12%         4.4700              UP 8                -5H                 UP 5 
Wichita-13%         4.7700              UP 8                25H                 UP 5 

 It's only $.05 but at $-0.05 H for 12's that's alot better than the DOLLAR UNDER being shown out in the country side at some of the elevators..  Can you afford to build bins for a dollar a bushel?  Actually transportation costs would eat into a quarter of that but still..

The alternatives to High Pro HRW (if ya have any?) is Sat's HRS.. (and we all know how proud he is of that..)

Given that Dec HRS Wheat is trading at $5.70 this morning.. plus the freight to get it down here.. puts it somewhere around $6'ish ++ laid into a mill..???

( http://www.mgex.com/quotes.html?page=quote&sym=MW )

Even if you add a few bushels on the mositure this past week..average yield is a bit over 46 bu in recent years.. your still looking at carryout falling 300+ myn bushels.. or 25%+

The trade is starting to pick over the pile from last year.. searching for quality to blend up the junk.. no doubt that GOOD QUALITY NEW CROP 2017 is going to be GOLDEN to blend 2016 low pro stocks with.. which would probably lend itself to more on the farm storage.. and then selective offerings to buyers..

Does a person really wanna hedge in this environment.. in the "fill the peaks.. spread the valleys school of marketing..."  This would appear to be a valley.. with the next opportunity in distant $5 to $6 expected futures offerings.. later this fall..

Dec KC is just a bit over $5.. headed to.. $6..??  $6.50..??

( http://www.cmegroup.com/trading/agricultural/grain-and-oilseed/kc-wheat.html?gclid=CLKF_ujMy9ECFYi2wAodXm4PLw&gclsrc=aw.ds )

Meanwhile someone who has wheat in commercial storage is looking at $3.26'ish net of storage out in the country.. with no quality premium offered.

???

When does HRW start trading on a Protein scale at the producer level..??

you would think some of these larger outfits could dedicate a house to protein..  Meanwhile KSU keeps kicking out more low protein wheats.. 

smh.