Charlie,
DTN reports interesting issues that explain why this market is going into orbit:
The U.S. PNW export market going through the roof with basis levels $1.40/bu stronger for February and $1.42 higher for March shipment at $4 and $4.05/bu over the May futures. PNW supplies are very tight in the export market. Exporters must raise basis levels in order to fill ships that have been booked. Cargoes of different kinds of wheat have recently been sold out of the PNW into Asian markets because ocean freight costs have decreased. Wheat is very hard to get into PNW position to ship, and with a very tight market, the PNW must outbid all competing markets.
DTN reports interesting issues that explain why this market is going into orbit:
The U.S. PNW export market going through the roof with basis levels $1.40/bu stronger for February and $1.42 higher for March shipment at $4 and $4.05/bu over the May futures. PNW supplies are very tight in the export market. Exporters must raise basis levels in order to fill ships that have been booked. Cargoes of different kinds of wheat have recently been sold out of the PNW into Asian markets because ocean freight costs have decreased. Wheat is very hard to get into PNW position to ship, and with a very tight market, the PNW must outbid all competing markets.
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