Wheat Merchandising:CONTINUE TO OFFER MINIMUM PRICE CONTRACTS TO YOUR PRODUCERS

摘要

Mild fund short covering and worrisome new crop weather conditions have allowed the Kansas City (KC) wheat market to reach a seasonal low. Managed money funds have short-covered approximately 30,000 contracts in Chicago and 15,000 contracts in KC. This prompted a futures rally of 15 to 20 cents and a basis rally of 50 cents for lower-protein wheat in the mill markets. Surprisingly,the 12 protein basis was slightly lower. We also saw some modest improvement at the Gulf. We expect to see more improvement the next 30 days.