Weekly grain report

Byron Behne watches the grain markets for the Odessa Union Warehouse.

3/22/13: Back from vacation, but after seeing what the market has done since I left, perhaps I should have stayed away. Soft white wheat basis vs. Chicago futures dropped 45 cents from late last week into this week, a result of a large producer selling at the end of last week combined with limited known export demand for white wheat going forward. The last big export news was the CCC donation tender for Bangladesh which took place last week and reportedly at prices 20 cents below the market at the time. Also it has been reported that SRW is working its way into feed rations in southern Idaho, as it is now cheaper than soft white wheat. The USDA will release their latest quarterly stocks report next Thursday, and it should be a major market mover. If wheat supplies don't come in tighter than expected one can probably kiss this market good-bye without some help from Mother Nature somewhere in the world down the line. The grain markets will be closed Friday, March 29, for Good Friday.

3/26/13: The last two days of grain trade have been relatively quiet ahead of Thursday’s USDA quarterly stocks and prospective acreage report. Chicago wheat futures gained about 3 cents on the day after trading lower early and KC futures gained 9 on freeze concerns for parts of Kansas and Oklahoma. Both are giving back gains in the evening session. Tomorrow ought to be choppy as well with the real action scheduled for 9 a.m. on Thursday after the reports. Without a bullish stocks number, old-crop wheat may not have much to hang its hat on anymore.