I just bought KW/ZW at 33 I feel that quality wheat is lacking this year and FSU internal war is also bullish for quality
I traded out then back in to the KW/ZW spread this morning. Closed the ZW short while it was down and then entered again when it moved back up a bit. Didn't accomplish as much as I hoped but nonetheless reduced my cost by a little bit on the spread.
I exited KW/ZW. Closed KW at 562 and then held ZW a little longer and closed it at 526 for a couple point gain. It might continue down not sure. I planned to just put KW back on once it dropped some, but I had a limit order on ZW that filled before then so am flat currently. Will probably put the whole spread back on shortly.
Kw is so weak. Seasonals don't seem to be kicking in and also it's a severe downtrend for KW/W trade.
Gotcha. Some guys here spreaded MW/W instead. That seems to be doing a little better. Anyway I dont think the Russian situation will have much impact. Physical trader told me 80% of all wheat in Russia has already been marketed.
Apparently, hard red winter wheat doesn't attract exports this year. Some buyers are switching to spring wheats. And Soft wheat has less acreage. It may explain the current oversold situation of KW...
Yep, Soft Hard is the only US wheat to get good exports but world is still lacking quality wheat so maybe there is till some room on the upside
Damn...I just did something utterly stupid here. I used ZC Mar instead of May in my combo selection when checking the position and thought my target had been reached. When I realized it i had already sold LEQ5...So I just exited @ -5410$ margin... Still a good trade but I think the move isn't finished.