In GrainCorp's southern division, including southern NSW and Victoria, more than 150,000 tons of grain was received last week, bringing total receivals in the division to 221,000 tons. This is also the case for wheat. Some lighter weights were being downgraded to feed quality barley. In other cases some barley downgrading was occurring because of cleaved grain, he said. The basis for spring wheat right now is red hot.
Someone wants to buy our spring wheat, but farmers are unwilling to sell.
Basis has not been this strong in several years and now it a great time to starting thinking about making cash sales. Unfortunately there's just no way to take advantage of both the strong basis and the good carrying charge. You have to choose one over the other. Whenever basis strengthens, you can bet that cash demand is higher than cash sales. Farmers just aren't willing to sell right now.