High protein wheat

[Wheatking]

I have some number one wheat with relatively high protein
for us, 14.9. Elevators or not paying for anything over
13.5 as they say there is ample supply due to the higher
protein in the states. Should a person hold out for
protein premiums or are they a thing of the past.

I was thinking I might sell some futures and hold out for a
better basis, and maybe a premium for protein

Thoughts opinions? One thing I know is that I am glad this
is a decision I can make without the board telling me what
is best.

[charliep]

Have started the work looking at protein spreads over time (CWB payment spreads, Montana, etc) and they have been highly variable year to year. Protein and quality have been very good in the US spring wheat areas (early harvest). Obviously, western Canada is just starting but I suspect also protein.

The spreads between 1CWRS 13.5 and 12.5 that I have observed to date have been around 25 cents/bu (others comment on their research). I have not looked at the spreads over 13.5.

The only published source of spreads I have seen are actually the indicative prices the CWB posts every day. The spread between a 13.5 and 14.5 is 10 cents/bu. Go to the price indicator tab, deferred delivery contracts and use the drop down tabs.

[URL="http://www.cwb.ca/public/en/"]deferred delivery[/URL]

[charliep]

I am okay with your strategy by the way with a caveat on the loonie (a risk) and will admit that I haven't seen enough happen yet to comment on basis in general. US basis to futures can also be variable year to year. I like the idea of holding back higher protein with the caveat the price improvement may come with better protein spreads but rather high protein can be used as a carrot/marketing tool for helping a grain company (and getting paid for it) blend up protein on a crop that is already stored in their elevator.

[SASKFARMER3]

Charlie the early HRS is grading #2 with
15.2 protein.Lots of Ergot in area, Small
little shit not long like other year.

[wmoebis]

SF3 is it only the ergot that is pulling grade down or is there other factors?