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NE Colorado | Here is a link to the KC futures contract specifications:
http://www.kcbt.com/contract_wheat.html
I still do not understand why the cash price is so out of whack with the futures price especially close to the delivery points for KC wheat.
I understand there is a lot of wheat in the elevators but if one delivers for example July, that is KWN10 which right now is at $4.59, wheat upon contract expiration to one of the designated delivery points, does one have to pay a big ransom to the delivery elevator in order to deliver to that elevator? I see nothing about ransoms in the contract, I do see where there is a discount for different delivery points and I do see where they want a warehouse receipt from a registered elevator, do the elevators hold up whoever might want to actually deliver on a contract?
It just seems that if the contract is for $4.59 then that is what one should get upon delivery, give or take discounts for quality and different delivery points. | |
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wheat basis
