Ag trade ideas

Full financial carry is the cost of getting the commodity delivered at the first expiry, stored and redelivered at the further expiry. If the spread goes over full carry, physical players can make a risk free profit by storing the goods, so it rarely happens. You can make a reasonable assumption that there is more chance the spread will revert and go higher.

 

Thank you for the definition. Are you getting your carry values from DTN ProphetX?

 

I have an excel spreadsheet. But I think even on CME website there is a full carry calculator somewhere.

 

Here are some data:

1) https://www.elitetrader.com/et/threads/wheat-calc-the-cost-of-carry.80938/

2) https://www.cmegroup.com/search/?q=VSR

3) https://www.cmegroup.com/trading/agricultural/files/vsr-calculator.xls

I hope to find it helpful.

Kind Regards,

George Kanellopoulos.

 

Thank you George

 

Thanks

 

Again, thank you TraDaTor. Great insight.

Thank you George

 

Coffee seems to be quite low, which kind of trade would you put on to take advantage of that situation. Outright / spread ?

 

Out half @ 2.850. Nice trade so far.

 

I don't find anything tempting both on the calendar spreads and robusta/arabica spread.