Ag trade ideas

Here it is. Almost feels like pure arb. But the problem is that another bull move like yesterday( supposedly strong export sales...? )would result in the same retarded pricing.

 

Your saying sell December and buy March? I don't have live data for cotton in IB, but just pulled up Barchart and saw March was down .39 compared to .09 in December. The times on the quotes usually don't line up on illiquid stuff though so probably not accurate

 

Dec Settled 0.24 over March yesterday after a big bull move made it from around-0.4 to +0.4.

 

I don't know if I want to touch it a second time...It's just too weird at 0.7...There must be something else.

 

Here it is...On cotton, when you see something retarded, wait a little bit until you think you are in fact the retarded one and, at this exact moment, trade...LOL

 

Did you end up entering?

 

No. It s a shame...But I also don't like doing 2 times the same trade...

 

That is disappointing, I forgot to add that data feed, so I didn't try doing anything with it either. Definitely seemed like a good potential opportunity.

Do you think it is just where the further out months aren't as liquid, it causes those divergences?

 

That cattle spread is breaking below the support at $8.20 or so. And the front month is up much closer to the cash after yesterday.

 

Definitely. There is no reason for Dec/Mar to rise on higher export sales IMO.