Okay so K-State's extension Marketing guy.. Dan O'Brien came out to talk to us yesterday.. and I like Dan.. good guy.
And we're talking about the wide basis for Wheat.. which basically boils down to protein values.. with whole elevators full of single digit proteins.. I made the comment that we needed to start incentivizing the producer to DELIVER on a protein scale.. or else.. we're gonna keep rasising low pro.. KC Wheat.
In the Spring wheat country.. maybe.. 85% of the wheat is binned on farm and then delivered to market.. so you can separate and get PAID.. or Penalized.. for the quality.. or lack thereof.. Here in HRW Wheat country.. you can flip that percentage.. 85%+ gets delivered to a coop.. and BLENDED with the neighbors junk.. to make a station average.. If you have 11's.. and the neighbor is hauling in 8's.. then the station average is 9.5% and the neighbor gets YOUR $$$ to go raise more junk for next year...
This needs to change..
What say you?
Repeating from below..
The Protein scale in KC.. aka Protein loaded on a Rail Car.. is.. trading $0.47 to as much as $1.75 OVER KC Dec.
https://www.ams.usda.gov/mnreports/sj_gr110.txt
St. Joseph, MO Fri, Nov 17, 2017 USDA-MO Dept of Ag Market News Kansas City Daily Wheat Bids, FOB Track, dollars per bushel
Futures 4.2200 Change (¢/bu) Basis Change
HRW Wheat: Ord Protein 4.6900-5.9700 UP 7-UP 5 47Z to 175Z UP 2-UNCH 12 Pct Prot. 6.1900-6.5700 UP 5 197Z to 235Z UNCH 13 Pct Prot. 6.6700-6.9200 UP 5 245Z to 270Z UNCH 14 Pct Prot. 6.9200-7.0700 UP 5 270Z to 285Z UNCH SRW Wheat NQ NQ NQ NQ White Corn NQ NQ
Cash bids reflect the difference between the basis and the futures settlement.
12% pro.. loaded on a railcar in KC is worth $6.38'ish.. vs $3.27 at the local elevator.. a $3 DOLLAR difference!!
Evidently the market rallied Friday given the MASSIVE FUND SHORTS.. and News that Australian quality is gonna be low also..
PROTEIN is the MARKET.. it's TIME TO PAY THE FARMER to PRODUCE IT!! |