Canada Markets Blog
Cliff Jamieson Canadian Grains Analyst
Tue Jan 21, 2014 05:01 PM CST

Tight stocks of protein wheat in the U.S. cash markets in recent weeks have resulted in upward pressure in the nearby March future in relation to the more distant May future. The March/May spread narrowed from a carry of minus 11 cents on Dec. 13 (March future trading under the May future), its weakest spread seen since the week of Nov. 26, 2012, to a high of 2 3/4 cents inverse (March above the May) on Jan. 17. Behind this move was a squeeze on stocks in the United States cash markets, with Canadian logistical issues undoubtedly implicated.

The narrowing ...

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