|
| Mgex delivery at par is 13.5 pro grade 2. 13 pro at a dime discout from memory.
Basis levles for 15.0 pro today is $5.50 to 6:00 over
Board rally based on inelastic demand for high pro? No
Alot of wheat, barley in the northern tier including Canada is feed quality and therefor not deliverable. 13.5s today are at a 50ish cent premium to delivery value. Delivery is a game of space, freight, and staying power and tends to be disconected from actual cash market as execution is a single car game rather than shuttle or unit train economics.....which dont work today either with freight trading back to $5000 for Oct Bnsf shuttles.
The board reflect the supply: basis reflects demand. Demand pull will eventually pull prices slightly higher ....but for now the guys with space and the daily demand have the chips.
Market is still trading supply: Wheat markets via the basis are trading demand. | |
|
Question for the wheat guys who are familiar with futures...
