In mid-June 2012, Oklahoma and Texas cash wheat prices were near $6 per bushel. The wheat harvest was running about two weeks ahead of average. The USDA was projecting that wheat ending stock would decline from 728 million bushels for the 2011/12 marketing year to 694 million bushels for the 2012/13 marketing year. World wheat ending stocks were projected to be 6.91 billion bushels compared to 7.2 billion bushel the year before
At this writing, the cash wheat price in Perryton, Texas, is $8.25 and the price in Medford, Oklahoma, is $8.28. Wheat may be forward contracted for harvest delivery for $8.40 (-55 cents KCBT July 20113 contract) at the Perryton and Medford elevators. Some producers are worried about protecting these relatively high prices.
Kansas City Board of Trade (KCBT) December wheat contract prices have been trading in a sideways price pattern between $8.69 and $9.57 since July 13 (Friday the 13th). Chicago Board of Trade (CBT) December corn contract prices have been in a sideways price pattern between $7.33 and $7.76 since September 28. Few market signals are indicating that wheat or corn futures prices will break out of the sideways patterns in the near future.