Ag trade ideas

Why it should be bullish to be after the peak volume ?

 

I've noticed that, statistically, after a sharp move, prices will revert after the peak volume. This applies mainly to LH.

 

When these funds are gone, maybe cash fundamentals prevail ?

 

I just check in my systems, and it's still slightly too early for LH, but it should be a good trade soon

 

Something like that I guess.

 

Out of curiosity, what do you look at (if you can say)?

 

Interesting wheat post on Twitter:

 

Thanks. Do you know what's VSR and DVE by any chance?

 

VSR = Variable storage rate. http://www.cmegroup.com/trading/agricultural/grain-and-oilseed/variable-storage-rate.html
DVE = Delivery Value Equivalent

By the way, this tweet is interesting. I understand the first part about VSR reversal , but not the rest. If someone has a better understanding of the delivery process, please educate us

 

I think it means that WZ is below cash.
And so selling WZ-WH is stupid because WE should go up to go to cash.

However, I disagree on WZ below cash. Up to my knowledge, cash basis are very weak (i.e. cash below futures).