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| There isn't near the acreage for this years crop so I don't expect a crash in wheat values to make room. A lot of storage has been/is going up now for the fall crops which can serve double duty for the wheat for a couple of months.. Heck we could store our 2010 wheat crop "on farm" if we had to... we didn't even fill all the bins last year..
I don't see the big storage squeeze.. sure a lot of terminals have wheat.. but the country has the room for an expected smaller crop... and building more room now.
In fact I expect corn basis values to improve as northern values are a lot higher than Ks values.. once farmers go to the field and the movement shuts off.. Corn values are going to pop.. maybe $.15 to $.30 here. Northern Ks corn is flowing into Nebraska right now.. the opposite of "normal." It's the big 2009 Ks crop that is carrying things right now.. but that movement could slow quickly and will over the next 30 days as producers return to the field.
"get it while you can." | |
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Basis on wheat.
