KCBOT JUL @ $5.00/bu.
Regional Wheat Trade...
Chicago
Excess Demand
Excess Demand
CO
$4.50
KC
25¢
100¢
St Louis
KS $4.70 $4.95
80¢
What is CO basis at harvest?
What is CO cash minus
futures?
NO-LA
$5.50
G-TX
$5.50
What is TX-Gulf basis?
Excess Demand
100¢
Rotterdam
$6.50
KCBOT JUL @ $4.70/bu.
Regional Wheat Trade...
Chicago
Excess Demand
Excess Demand
CO
$4.00
KC
35¢
120¢
KS $4.30
St Louis
$4.65
90¢
What if transportation costs
increase? What happens to
CO basis? What happens to
TX-Gulf basis?
NO-LA
$5.20
G-TX
$5.20
130¢
Excess Demand
Rotterdam
$6.50
1
KCBOT JUL @ $7.70/bu.
Regional Wheat Trade...
Chicago
Excess Demand
Excess Demand
CO
$7.00
35¢
120¢
KC
St Louis
KS $7.30 $7.65
90¢
What if transportation costs
increase and market conditions
change? What happens to CO
basis? What happens to TXGulf basis?
NO-LA
$8.20
G-TX
$8.20
130¢
Excess Demand
Rotterdam
$9.50
2
3
4
Excess Supply
Excess
Demand
5
6