The NGFA's Risk Management Committee will be reviewing the performance of the hard red winter (HRW) wheat futures contract when it meets July 21 in Kansas City, Mo.
Basis levels for HRW wheat have widened in recent weeks during a period of plentiful stocks, sluggish export demand and a low-protein crops in some HRW wheat-growing areas, raising concerns from farmers and grain elevators. The meeting will provide an opportunity for the NGFA and Kansas City Board of Trade (KCBT) officials to review current market conditions and discuss impacts on elevators and their farmer-customers. The NGFA Risk Management Committee anticipates meeting with members of the KCBT's Wheat Contract Committee, as well as with the exchange’s executive leadership.
In addition, representatives of the NGFA's Country Elevator Committee and several chief staff executives of NGFA State and Regional Affiliated Associations from the affected region will be invited to attend the meeting to facilitate a broad and meaningful discussion. NGFA members are encouraged to submit any comments or suggestions that should be considered during committee's July 21 meeting to NGFA Director of Marketing/Treasurer Todd Kemp at tkemp@ngfa.org, or by calling 202-289-0873, ext. 16.
During its meeting, the committee also anticipates reviewing potential changes to the CME Group's grain futures contract settlement procedures; implementation of the variable storage rate concept for the Chicago Board of Trade wheat futures contract; and preparation for the discussion on convergence issues scheduled for the Aug. 5 meeting of the Commodity Futures Trading Commission's Agricultural Advisory Committee.