zero basis

[Tandem007]

We control our destiny. Don't let others do it for you. Higher pricescexisted last year, they exist today. Sometimes even at your local plant. But it requires some effort and staying out of the coffee shop.

[bucket]

Mbdog

You can't be serious? You pay a freight price to get grain to the west coast and you don't expect port price.

Your solution is to grow grain near the port?

And none of you think wheat should be converted to Canadian dollars?

You don't mind giving away the foreign exchange conversion?

Good thing the other customers you are marketing to, understand you are willing to sell for less than fair market price

What exactly happened to the term arbritrage since the open market came to Canada?

And charliep just got called on his remarks about watching basis levels, now his tune is its the net price.

Forget about other factors like fx, narrower basis levels, empty elevators, poor quality late harvests etc.

[charliep]

To be fair to me, I suspect most of my comments on basis were in reference to canola. You may be able to find some place in Agriville where I made a comment but I can't remember doing so.

If I wanted to look at wheat basis, I would look to Montana. I highlight again that 1DNS 13 protein at Great Falls is 75 cents under, 14 protein 85 cents over and 15 protein $2.05 over (all US dollars).

I would also look at net back (likely a better term) which is port based price versus a local elevator price. Not basis relative to futures but rather an alternative way of looking at prices.

In case I haven't been clear, I think there is a tighter market and therefore room for improvement on higher quality/protein wheat. A concern I have is grain companies are blending everything to hit mimimum specifications on wheat and targeting volume.

[Braveheart]

ND basis ten days ago was $0.50 under Dec Mpls.but has since weakened to $0.70 under. It weakened when wheat futures started jumping up a little. Might be more related to perceived volatility than any fundamentals.