Furthermore, the Variable Storage Rates go into effect on the March 2018 contract which is designed to FORCE futures to the CASH Market.. which.. is 11% protein for KC.. which is trading at a PREMIUM to the Futures.

 ( http://www.farmfutures.com/market-reports/cme-approves-variable-storage-rate-kc-hrw-wheat-futures )

A VSR will allow warehouses to adjust storage rates for holders of warehouse receipts for grain approved for delivery against the KC futures. A VSR formula already is in use for soft red winter wheat futures.

“VSR provides a formula for triggering higher maximum allowable storage charges when futures spreads are at or near financial full carry and lower maximum allowable storage charges when futures spreads are narrow or inverted,” the CME said.

The CBOT intends to implement the VSR mechanism with an initial observation period beginning Dec. 19, 2017 and ending Feb. 23, 2018, which will evaluate the 2018 March-May KC HRW Wheat calendar spread “relative to financial full carry with any changes to the storage rate effective on March 18, 2018.”

The Mills and exporters have been chewing away on the quality stocks.. every day.. almost half the crop will NOT make grade and hence is NOT DELIVERABLE.. the Market for DELIVERABLE quality wheat is TIGHT.