Anyone notice ZWH2/ZWN2 spread

Discussion in 'Commodity Futures' started by J-Law, Oct 5, 2011.

  1. J-Law


    Looks like Mar/July Wheat is about to take out spread lows.
    Any fundamental factors at play here that might act as a floor?
    Or is it about to trade thru the -44c low?
  2. I'm new to the idea of spread trading. I'm looking at both charts and can't really see the difference.

    Are you talking about the price discrepancy? Don't all contracts differ in price by a bit?
  3. J-Law


    Looks like we have a possibly rally coming. USDA report is tomorrow
  4. bone

    bone ET Sponsor

    I actually got long ZW H2-N2 in early August, and then got out of it for a modest loss four weeks later when it didn't follow through and perform. When I took that loss in September, I shorted ZC Z1-Z2 which of course performed.

    In terms of ZW H2-N2, the July and October lows were quickly accumulated in that - 40 ish area. Buyers certainly did appear.

    There are certainly better spread swing trading opportunities in the softs complex at present.
  5. kanellop



    I see your Comments and decide to reply to them...

    Here are 2 Places that you can get the Informations that you need:

    1) ,

    2) .

    As for Wheat,

    this time makes huge swings almost in all the U.S.A Exchanges.

    Possibly, will make even more the coming time period.

    Now, here for Wheat exist some interesting News which are the following: ,


    Wheat prices followed a similar pattern, with a large 46-cent swing in July Minneapolis wheat for technical reasons. Unfortunately, it came well off its high, even though it finished the day with solid gains. Fundamental support comes from ideas that this year's quality U.S. crop will be attractive to foreign customers amid production problems in Argentina, Australia, China and Russia. However, corn remains a bit of a lid for wheat.

    Chicago July wheat has essentially encountered resistance at the old descending trend line off the 2008 and 2011 highs. Chicago wheat continues to trade broadly between $6 and $7 per bushel. Kansas City July wheat probed briefly above $7, before late-day weakness pulled it back very near to the 200-day moving average at $6.86.

    Commodity Weather Group observes that the next four weeks will be critical for Russia's wheat crop. USDA lowered its Russian wheat production estimate earlier this month from 56 million metric tons down to 53 mmt. A few days later Russia lowered its estimate to 50 mmt. About 25% of Russia's wheat belt has been under some degree of moisture stress, leading to the downgrades. However, forecasters are worried about a warmer drier pattern over the next four weeks that could further reduce yield potential of up to 50% of the crop.


    Now, i had trade a little Time period ago the Chicago Board of Trade ( CBOT ) Wheat,

    but i am out of it right now except of a Long Wheat Spread that i am in.

    I am Long on Kansas City Board of Trade ( KCBT ) Wheat May 2013 and Short on Chicago Board of Trade ( CBOT ) Wheat May 2013,

    with entry point in about of 15 Pips.

    Right now, is about 10 Pips.

    Possibly, my Stop Loss will be -10 Pips.

    Be very careful with Wheat.

    Kind Regards,

    George Kanellopoulos.
  6. since H2 expired, it will no longer work,
    go to
    on the RHS box (which writes Enter Symbol) enter spread as the following format
    = 'ZW Z2' - 'ZW K3'
    this is Dec2/May3 spread
    you can also write spreads in the following form (allows to write bean crush, cattle feed, oil crack spreads)

    = 3 * 'ZW Z2' - 2 * 'ZW K3'