Still Giving Back

As corn has had 2 limit down moves in 2 days, I would have thought that the CBOT wheat have have been the weakest wheat market, but nooooo....

MGEX has dropped the most with the premium for Dec dropping to about $1.15 over the CBOT and 30 cents over KC. While the premium to CBOT is historically very high, the premium to KC is fairly normal. Since the cash market for 14% protein wheat remains at a fat $2.85 premium to 11% protein, the MGEX futures are pricing in a big and high quality crop. This seems overly optimistic to me, since planting was late and the planted acreage is not so high.