Wheat Markets Continue Their Rally

[charliep]

Wheat markets are in the Christmas spirit of giving again last night. A very nice rally in recent.

Have given up talking about MGEX but will post the KCBT and CBT wheat wheats. Interesting changes in spreads. Opportunities for any of these markets?

Posting weekly nearby to put more context to the rally/another look at technicals.

[URL="http://www.farms.com/markets/?page=chart&sym=KEH15&domain=farms&display_ice=1&e nabled_ice_exchanges=&studies=Volume;&cancelstudy= &a=W"]KCBT[/URL]

<a href="http://www.farms.com/markets/?page=chart&sym=ZWH15&domain=farms&dis play_ice=1&enabled_ice_exchanges=&studies= Volume;&cancelstudy=&a=W">CBT</a>

[SASKFARMER3]

And Canadian Grain Companies continue to widen the basis. Ah Canada where were told you get $3.00 per bushel less than the world price. Enjoy your discount. Our dollar doesn't mean shit on wheat prices.

Ah farming in Canada.

[saskcanfarmer]

Guess you should of locked on a basis earlier on. We didn't hit the absolute high but we did a bunch at 60,over March for Feb delivery. Already over the highs of a few weeks ago. Time to pull the trigger and lock in the futures?

[SASKFARMER3]

I have a way better basis in that. Those who missed are getting it this morning as all companies are widening basis. When will some of you realize its us against them. Were getting screwed in Canada on Grades and Exchange. Wake up.

[hobbyfrmr]

I really don't know much about the wheat market. If you lock in a good basis for March , do you have to deliver in March on that basis even if the March futures price is poor/unappealing? Or, if it looks crappy can you pay a fee and roll your good basis forward to another futures month?

[charliep]

SK3,

You are posting from a warm place/holiday. I assume you are there because you can afford it. You also indicated you used your marketing skills to lock in a better basis.

Reminds of the joke about the difference between a Saskatchewan farmer and a 747 jet. You guys can fill in the punch. Its an old one.

[charliep]

I would have it in my head that I need to pull the trigger by later than mid February. If I were prepared to store/could postpone delivery and the market was paying carry (interest and storage), then I would look at a more distance month for my basis contract.

My own thoughts are just pull the trigger and price into this rally. If you get nervous you have acted to early/the market is going rally, look at other alternatives on a market dip. I should note you don't have to price all your inventory. Do some now and hold some into the summer if like. That is where your market plan comes including financial needs as well as market opinion.

[SASKFARMER3]

Ah Charlie not yet but real close. Why not we work hard all year its Christmas and what better than spending it with family and friends.
Family is way more important than a farm.
Yes this crop is going to take some negotiating to move with grades and yes I did my usual off the combine with not so nice basis but price is ok. Now the last was done for the Jan to April time period for delivery and basis when they dropped a while back. All HRS will be gone before seeding.
I might roll the last one in April if USA winter wheat has issues.
Merry Christmas!

[tweety]

You work barely half a year.

[SASKFARMER3]

Really half a year we work what a f$&king joke!