from dtn
There is one country that has adequate supplies of high-protein wheat, and that is the U.S. Canada has some high-protein wheat but has cut back on exports also due to a short supply situation.
As a result of the supply situation, speculative and commercial buying has come into the wheat futures markets, especially in spring wheat, and is reducing the carry in market with nearby futures gaining on deferred months. Additionally, basis levels in the interior as well as in export markets have increased with exporters looking to cover commitments and fresh sales while mill buyers are also looking to increase the amount of U.S. spring wheat they normally purchase because of the supply situation in Canada. In a normal year, mills can buy Canadian wheat cheaper than U.S. wheat.
There is one country that has adequate supplies of high-protein wheat, and that is the U.S. Canada has some high-protein wheat but has cut back on exports also due to a short supply situation.
As a result of the supply situation, speculative and commercial buying has come into the wheat futures markets, especially in spring wheat, and is reducing the carry in market with nearby futures gaining on deferred months. Additionally, basis levels in the interior as well as in export markets have increased with exporters looking to cover commitments and fresh sales while mill buyers are also looking to increase the amount of U.S. spring wheat they normally purchase because of the supply situation in Canada. In a normal year, mills can buy Canadian wheat cheaper than U.S. wheat.
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