KCBT Moving to Adopt VSR

Thanks to comments from BMH, and no thanks to the KCBT, we know that KCBT's Wheat Contract Committee has recommended moving to a Variable Storage Rate mechanism similar to that on the CME. A google search shows this news conveyed by both National Grain and Feed Associationand grainnet.com--though neither cites a source. I think the grainnet.com summary is not quite correct on the details of the existing CME VSR, and the KCBT plan may change as it goes to the Board and then members for approval, but it looks like it will happen.

I continued to liquidate my Dec MGEX/CBOT wheat spreads as the overall market threatens to burst higher-now down to 50% of previous position. In the cash markets, the Spring Wheat index is pushing up toward 70 cents over Soft Red Wheat, so I am reluctant to exit at these 33-34 cents premiums for Dec MGEX, but it's nice to have more flexibility if the intermarket spread is volatile.