# U.S. wheat farmers losing faith in using futures to hedge risks to crops | HPPR

> U.S. wheat farmers are losing confidence in using CME Kansas City wheat futures to hedge, after the last three expiring HRW contracts went off the board with cash prices 25 percent or more below futures at delivery locations. Elevator storage at capacity and a 6 to 9 cent per bushel storage rate are cited as causes, with a doubling of storage rates or a variable storage rate under discussion.

- Date: 2016-12-27 · published 2016-12-27T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/73517-u-s-wheat-farmers-losing-faith-in-using-futures-to-hedge-risks-to-crops-hppr
- Commodities: [Wheat (HRW)](https://feedsoft.ai/c/KWHEAT.md)

## Why it matters

A broken HRW contract weakens price discovery and hedging for buyers and exporters, and widening basis at delivery points keeps cash HRW prices pressured relative to futures. Storage fixes could tighten the basis over time.

## Read by commodity

- KWHEAT: bearish ▼

## Sources

- hppr.org: https://www.hppr.org/hppr-economy-and-enterprise/2016-12-27/u-s-wheat-farmers-losing-faith-in-using-futures-to-hedge-risks-to-crops

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