Producers in the southern Plains are feeling frustrated with the current wide basis in wheat.
According to an April report from Reuters, the CME Group Inc. made changes to hard red winter wheat futures contracts. As a result, the variable storage rate (VSR) will go into effect March 18, 2018.
“Its one job is to try to bring basis and futures back together, and you will see that happen,” said Angie Setzer, vice president of grain for Citizens LLC. “Elevators will start to compete for that grain and it should help the farmers see that convergence start to develop.”
Setzer believes the VSR will be beneficial to producers in the southern Plains.
Listen to Setzer’s full comments on wheat on AgDay above.