I notice cocoa seems to have lagged the others recently - do you trade this as a spread/butterfly against anything?
I was short Cocoa as a hedge for the Wheat position. I wanted to hedge against a sustained collapse in commodity prices.
I've been long September 2010 Wheat since the 30th of June with a current stop of 673.00 (All In) I've been long December 2010 Wheat since the 30th of June with a current stop of 703.25 (All In) I've been long March 2011 Wheat since the 30th of June with a current stop of 771.00 (All In) I've been long May 2011 Wheat since the 1st of July with a current stop of 725.25 (All In) I've been long July 2011 Wheat since the 1st of July with a current stop of 719.25 (All In) The rise in price is not only related to the Russians but it is in part due to the vomitoxins that were present in the recent harvest due to excess rain prior to and during harvest. Yields were ridiculously low during harvest because of the toxins. That along with a perfect storm of technicals and . . . voilà . . . a pretty tremendous run up. Currently, today there is a potential short term top setting in for all of these months. Whether that turns out to be a long term top or not, only the charts will tell. I'll be tightly readjusting the stops this evening.
Amazing on a day when price is limit up you get 80+k contracts going through, biggest volume day in a while. Seems that 6k+ occurred at the upper limit. Will be interesting to see how price reacts tomorrow. Will limits be raised to 90cents?
To conclude. Nice move to around 840, trailing stop got taken out just a few ticks below 800. It's been fun. Now back to the drudgery of more normal market moves