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north central Oklahoma | We have the option of taking the 53 cent basis offered right now on $6.19 July taking $5.66 local delivery or something they call the futures first option, allowing the producer to set his own basis anytime between now and June '08. That burned a lot of guys this year, as typically we have had a 25 to 30 cent basis at harvest here, athis year basis went up at harvest. But, prices are higher nowthan they were a year or so ago, and that plays a big part in the bosis. More volatile markets demand higer basis levels, the co-op ain't gonna get burned and are protecting themselves by giving a larger cushion. I have to call daily to the office to find out basis change and just don't want to mess with it. I am happy with $5.66. I may not be in two months when July wheat is $7, but who knows, in two months, July wheat could be $4, then I'll feel like I hit a home run. I just begun my '08 marketing and contracted 2500 bushel, not the end of the world yet. | |
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$5.29 July 08 Soft Red Winter Wheat
