Posted by: usset001 | April 27, 2011

Interdelivery wheat spreads in Kansas City

Kansas City Jul'11 wheat futures

I can’t forget the Kansas City market. What’s happening in the world of hard red winter wheat?

Since the start of the new year, the new crop July contract has lost, then found, about $2/bu. The market today is about 30 cents shy of the high water mark set in early February.

The Jul’/Dec’11 spread gives us another view of price direction. In the case of KC wheat, we can at least take comfort in the fact that the interdelivery spread has stabilzed (read, “quit widening”) since early March. This stands in contrast to the spreads in Minneapolis and Chicago, which continue to erode over time.


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