Wheat rally?

[farming101]

Minneapolis could get some buying interest in here with a close tomorrow of 5.11 or better.
So far it looks like a short covering rally.

Carry 17N-16U is down 20 cents since July 26. Demand coming forward? A little positive anyway.

[farmaholic]

16/17 wheat crop quality and quantity unknown and I am out of 15/16 wheat. I don't like pricing unknown quality based on specific specs without a set premium and discount schedule attached to the contract. Lose too much power and at their mercy, they transfer the risk to me...possibly at my expense, no thank you. I realize opportunities may slip by with this approach...oh well.

Sell what you "have", speculate on the unknown.

MWN7 @ US 5.47 converts to about CAD 7.05.....basis unknown.

[farming101]

Farma, stated that way the basis right now is about -$1.00 CAD depending on elevator for that next summer delivery. Not enticing at all.

Still looks like a short covering rally. Might have enough gas to make local pricing close to 5.90-6.00 CAD for Nov delivery. Southern AB is there now.
Not enough. Oh well maybe next month....

Across the line in ND one elevator is quoting 4.27 US Dec delivery for HRS 14%. Things are tough all over.

[malleefarmer]

bad news from down under would think Australia will have largest crop on record by far possibly by 10%.
even on my ranch we some have wheat were hoping will do 4 t ha average is 1.8 to 2.
would suggest protein will be way down in Australia.

[bucket]

Quality might be the play.

[Oliver88]

In July there was a 30 cent discount for 12.5%.

Will this widen?

[farming101]

Oliver, I'm thinking only the lowest protein brackets may widen.
That could change once harvest is in full swing and there is a better idea of quality and protein levels.