N/X closed around 48-49. Most of the volume today at 46 (about 500 spread trading there). I added to the position by buying the x10/x11 at 27 cents. With that spread I will sell the x10/n11 when it narrows leaving me with the N/X at something better than 46 cents i.e. more money in the X10/x11. As with any grain spread, once the market starts to move to a larger inverse, the market is saying that it is willing to pay a premium for the nearby relative to the deferred in order to secure stocks for the nearby position. In theory the spreads through the crop year should reflect carrying charges. Only when there is a percieved tightness in stocks relative to the open interest will the spreads start to invert. Up to now there has been some debate about the carryout. However, with demand from China unrelenting it appears that the carryout is appoaching 200 which is the threshhold for soybeans. If harvest becomes a problem or China continues buying or there is dryness in S.A. stocks could become tight again like they did in 09. I have been watching these spreads since last spring and today there appeared to be short covering in the spreads. Regards, local