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NE Colorado | Something is terribly wrong with the basis. An elevator manager once told me it was "because of the speculators driving the price up when in fact the demand wasn't there." Well, I always thought the basis in any case was supposed to converge with the cash price at the delivery point upon contract expiration, look at the very wide basis in Kansas City itself! Isn't KC supposed to be the delivery point for KC futures?
http://agmanager.org/marketing/basis/maps/archives/2010/March/2/def...
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Historic high basis price on wheat.
