pricing HRS grade spread

[oliver990]

I think that it is better to lock in base grade #2 for areas that are more likely to grow #2 HRS wheat. Less risk to adverse grade spread at devilery this way. More likely to hit protein than grade. What are others thoughts? What is a "good" spread expectation between grades?

[SASKFARMER3]

We were at Viterra today and a bunch of
guys $7.00 Bushel were picked up for fall
of 2012.
But Viterra uses a 1 13.5 as their base
and you no nothing on the spreads.
Cargil uses 2 13.5 but they are way lower.

[Daylate]

Right, we don't know the spreads but viterra has 1 13.5 base
2-13.5 @ -0.25 of base
2-13.0 @ -0.50 of base
In our area i would be most comfortable with a 2-13.0
I looked back to our last 4 years and we got #2 on 3 years and a #3 on 1 year with an avg of 13.1 protein of all 4 years.

[oliver990]

I have put in $7 target for #2 13.5