# Crashing international and rising basis - Mecardo

> Chicago SRW wheat and ICE and MATIF canola and rapeseed futures have fallen sharply over recent weeks, with SRW down about 30%. Local Australian wheat futures fell less, leaving a wide discount to international values. Local new-crop wheat is currently cheap relative to international prices.

- Date: 2022-07-12 · published 2022-07-12T12:00:00.000Z
- Category: market · region Australia · magnitude low
- Page: https://feedsoft.ai/events/12502-crashing-international-and-rising-basis-mecardo
- Commodities: [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Canola Meal](https://feedsoft.ai/c/CANMEAL.md)

## Why it matters

The wide basis and spread between local and international markets suggest that export parity is attractive. Feed buyers may find value locally, though international prices could rebound as harvest pressure eases.

## Read by commodity

- WHEAT: bearish ▼
- CANMEAL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| CANMEAL | 2022-07-11 | 1 | -8.4% | -2.9 | Describes a broad collapse in wheat, canola and rapeseed futures over recent weeks, indicating risk-off sentiment across grains and oilseeds that could contribute to the sharp meal decline. |

## Sources

- mecardo.com.au: https://mecardo.com.au/crashing-international-and-rising-basis/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.