Another good year for cereal producers on the way. The 2 main concerns driving the number crunchers on quality export availability going forward are severe moisture deficits in key winter wheat areas in the US and also in the FSU/Russia
The basis don't lie. The world is short protein wheat. The old adage holds true, 'never store a short crop'. Time to cash in the remaining 2014 chips and look to pricing 2015 this last week. Noodle wheat basis is negative to ASW wheat. Many noodle grower s are selling July SWAPS in the hope of picking up on noodle premiums when the market realises they are short. You can be sure there will be a shortage for Japan and South Korea in 2015. $500 noodles here we come again. Canola will also be a quiet achiever in 2015. Lots of growers still holding old crop canola knowing they will slash new crop plantings.
