Wheat may be forward contracted for harvest delivery for about 30 cents less than the KC July wheat contract price. The basis range is from a minus 50 cents (southern Oklahoma and Texas Panhandle) to a minus 15 cents (north central Oklahoma). Using a KC July wheat contract price of $5.65, the harvest forward contract price would be $5.35 ($5.65 - $0.30).
In June of 1990 I had the opportunity to tour Russian and Ukraine winter grain farms and visit with the farm managers. They all said that mono-cropping wheat was not good for the land and that yields could be increased by using crop rotation. My comment was that Oklahoma and Texas Panhandle farmers didn’t have a choice except to mono-crop wheat.