|
SEON | August 26, trader A quoted me $-1.90 basis on $7.03 hard red winter wheat FOB my field.
August 30, local elevator quoted me -1.45 basis on $7.18 HRWW, FOB their location.
Sept 3, Chicago price has increased to 7.25 and same local elevator says $-1.45 basis is still there if I want it. Looked to me like HRWW was getting ready to move up a little and the basis seems to move lock step with Chicago, so today I locked the basis only. It finished the day at $7.29 - $1.45 = $5.84/bu right?
here is a chart:
http://bigcharts.marketwatch.com/advchart/frames/frames.asp?symb=wn...
Now look at the link below. From what I can gather, this is FOB a great lakes port and is the net cash price after basis is subtracted from the Chicago price. It says $6.37/bu.
$7.29 - $6.37 = $.92. Is this $.92 the basis if I hold a contract to deliver to the port?
If I'm paying my local elevator $1.45 and only $.92 of that is the basis FOB the port, I suppose the other .53 is going to pay the elevator's trucking to port?
http://www.gfo.ca/Marketing/WheatMarketing.aspx | |
|
locked in basis....more questions
