Even as the price of September MGEX wheat has declined on an outright basis by $2/bushel over the last 2 months, the Sep/Dec calendar spread has continued to indicate a tight supply with Sep closing even with December today--the same level that spread traded when the outright market was $2 higher. Crop ratings remain pretty good. The decline in deliverable stocks at Duluth and Minneapolis has abated. It doesn't look like we're going to run out before the harvest comes in...so why isn't the market charging anything to store the harvest through December?
Hmmm...
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