# Non-convergence a problem for hard red winter wheat contract

> Kansas wheat storage piles persist after the record 2016 harvest because futures failed to converge with cash prices at delivery elevators. Futures traded 50 cents to $1 above cash during the July 2016 delivery period, and Kansas economists are studying solutions.

- Date: 2017-01-18 · published 2017-01-18T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/73033-non-convergence-a-problem-for-hard-red-winter-wheat-contract
- Commodities: [Wheat (HRW)](https://feedsoft.ai/c/KWHEAT.md)

## Why it matters

Elevators storing wheat for warehouse-receipt value keep grain off the cash market, tightening local supply for buyers while widening the futures-cash gap.

## Read by commodity

- KWHEAT: neutral

## Sources

- farmprogress.com: https://www.farmprogress.com/crops/non-convergence-a-problem-for-hard-red-winter-wheat-contract

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