Ag trade ideas

That HO spread is coming off, just broke through the support around .025. Not the best feeling when you watch a trade go your way that you didn't put on. FCX, did you get $3k for the margin on that April-May HO spread, or was that HO v. RB? I used the CME Core Margin calculator, that's what gave me $250 in margin.

 

I'm showing April May on HO as about $2,500 initial and $1,900 maintenance.

 

FCX: You are correct, I was incorrectly using the Platts heating oil contract in the margin system.

 

I am in with a different one. Short Jul/ Long May 16 @ -1.77.

 

Out @ 17. We are running at 90% of full carry. Given we currently are at 65% on front spread( May/Jul) the chances of carrying charges increasing at the end of May are quite low so the reward is not worth the risk of holding longer. Greenie tell me if I am wrong.

 

The LEJ - LEM spread is breaking out above the resistance around $8 now. Should be interesting to see what happens with it today.

 

I don't know why I didn't like it the other day...LOL. I placed an order in case it pulls back a little.

 

It is somewhat high compared to normal levels isn't it?

 

Yes. But Cattle hasn't been "normal" in a while.

 

That spread was range bound from 6.60 to 8.00 for the past month or so. I think it could be headed to 9.00 or so. Might get a pullback to around 8.00. There is some decent volume in it for a cattle spread.

That heating oil spread has come off to around .016 or so, pretty close to my price target. I was way off on the margin requirement, but called the move right