1. Pacific Northwest Soft White Wheat Historical Spread Analysis Data: USDA Agricultural Marketing Service – Portland, OR Chicago Board of Trade Analysis: Drew Lein, Global Risk Management August 18th, 2010
2. PNW cash wheat and Chicago futures markets directionally follow one another The difference between the two prices is referred to as the spread or basis. When PNW Price > Chicago Price, basis is at a premium. When PNW Price < Chicago Price, basis is at a discount.
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4. Why the record high premiums in 2007? Record decline in White Wheat ES.U combined with decline in All Wheat ES/U
5. PNW Cash prices recently have traded well below historical relationships to Chicago Futures and are currently at a discount.
