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| I know many farmers (not enough though) who store their wheat on the farm to try and capture some protein premiums.
The prices you show are correct on rail premiums at Kansas City but very few farmers can get wheat on rail to Kansas City so they must work other bids.
I have heard that delivering wheat to the various delivery points for delivery against the KC futures is very difficult as often the delivery elevators do not have any room or delivery slots available. I am not sure of this but maybe someone else has an answer.
Years ago I took delivery on one contract when the Kansas City cash basis was higher than the futures to see how it worked (be ready to wire funds the day of delivery in exchange for a warehouse receipt). A commercial elevator delivered me a lower grade wheat in their elevator then discounted me all but $.01 of the higher cash price. I think they have tightened up the deliverable grade standards since then and I remember the person I called to sell the wheat said “now you know. How it works”.
I agree that producers need to manage all aspects of their crop and that quality in the form of protein is not enough of a factor in many HRW producers plans.
Just my experience from many years ago.
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It's time to move KC Wheat to Protein bids at producer level.
