This bounce must have been caused by the USDA report - perhaps the crops are not doing that great, after all. Let's see if this is a headfake or a genuine reversal.
be very careful with that nasty spread, cost me and my business partners about 300 k total last year man. I think you'll be okay it just gives me fucking nightmares thinking about it
i know some big dairy farmers that were heavily involved in the spread and they loswt around 600 k finally before they had to get out. it was a rough year for the wheat corn lol
took my 0.10 per contract hit (-$5000) now looking to get in again i.e. long cz8/short wz8 cannot justify wheat at these levels
I also have heard of some pain out there. I bot the cz/wz in april at average 3.15 and later stopped myself out average 2.11 for a nice ride. I am however keeping a close eye on all the wheat going into feed in Europe due to high corn prices
that was a spread that my family has traded for probably 30 yrs man and it got so fucked up last year, it was a rough summer to say the least. good luck though, i just dont feel comfortable going in at this point right now
Many of my neighbors (farmers) called me last year going into the harvest and asked my why all of their charts were showing bottoms. They said price CAN'T go up into harvest. They've relied on the fundimentals for ever but found that they needed something else to hang their hat on. The markets will do whatever they want to do and we need to read price direction and strength or these markets will leave us in their dust.