zero basis

[bucket]

Does anyone here think grain in North Dakota gets trucked 300 miles?

No wonder Canadian farmers get laughed at.

A government that doesn't support them and forced to truck grain 300 miles plus to get no closer to port.

Brilliant.

[mbdog]

bucket...dunno if your being smart or stupid in this thread, but instead of trying to rip Charlie a new asshole, your anger/frustrations should be focussed on why basis is what it is. If you want the port price of wheat...grow wheat at the port. If you want the US price...campaign to remove the border. It seems to me the bigger problem/hurdles lie with "why " the basis is what it is....not with what Charlie is trying to explain. I haven't got a clue what good basis is anymore....trying to get a handle on "market" forces as they pertain to me and my farm and maybe...just maybe...market forces are having an impact on other businesses...logistics as well. We are in an increasingly transparent economic environment...which is good...but attacking Charlie? The grainco's for their basis?
I'm not saying your wrong, but don't think he's wrong either.

[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.