Ag trade ideas

Here it is: http://www.dailylivestockreport.com/

 

Oh, ok. Another broker in the office uses that report. I didn't realize it was the same company.

 

Yes. Apparently they aren't called Steiner Consulting anymore...

 

Long Sep/ Short Dec 16 Corn @ -7.5. Only got around 3/4 of desired position.

 

Short Dec/ Long Mar 17 Corn @ -9.25. Long term.

 

Why shorting DEC ?
The contango structure is pretty classic with a higher contango between MAR/DEC than DEC/SEP.
My own feeling is that I dont understant why the contango is so weak compared to the low price /high stocks situation we currently have.

 

A couple of reasons: - The curve is too flat. Dec most of the time is at least at a discount to Jul.
- Good technical support and seasonality for Sep/Dec.
- Really good long term seasonals for Dec/Mar while the contango is weak.

 

Was filled on the remainder.

 

@TraDaToR
Thanks
Dec is at a discount when price are high. Long SEP/short DEC is 90 % a long corn position for me. However you have a nice assymetry in this trade. And I agree on the week contango compared to low prices !

 

It would be interesting to compare fundamentals