Highlights
If you have soft red winter wheat to deliver this summer, you need to set the basis about three weeks before harvest starts in your area. Historically, that is when the basis is as firm as it will get.
Soft red winter July wheat ended Friday at a one month low of $6.27½. All SRW wheat trading volume was a one month high of 280,935 contracts, with July seeing a heavy 131,164 contracts traded. Heavy trading volume on a down day for prices is an indication of strong bear move, but wheat is grossly oversold from a technical perspective. Harvest has started and note that soft red winter wheat carry (return to storage) is more than 100% of normal “full” carry: