Long Sep Wheat / short sep Corn

Discussion in 'Ag Futures' started by TraDaToR, Jun 17, 2011.

  1. TraDaToR

    TraDaToR

    Hello,

    I have this spread right now on my seasonal radar, but I don't know if it is the good year to put it.

    Corn has overperformed wheat a lot in the last year and they are pretty much on par right now. According to some article, wheat starts to be used as a replacement to feed cattle. Sep Corn is an intercrop month and at a premium to the new crop.

    So what do you think? Will wheat continue to plunge while corn rises or is this an occasion to place a "reversion to mean" trade?

    Thanks.
     
  2. BigSalad

    BigSalad

    I'm heavily short Sep Corn from about 720 on average. I think the US Dollar has turned and together with seasonal factors this should drive the contract down to 600.

    I don't really have an opinion of the Wheat-contracts right now.
     
  3. TraDaToR

    TraDaToR

    I think I agree with you, corn may go down, but I need wheat to go down less that's the problem...:D And I am super bad at directional calls...LOL
     
  4. emg

    emg

    i would not be in any grain spread at the moment.
     
  5. TraDaToR

    TraDaToR

    Why? too much volatility?
     
  6. emg

    emg

    storage cost is going up
     
  7. TraDaToR

    TraDaToR

    Ah OK Thanks.
     
  8. emg

    emg

    focus on the live cattle spread for now
     
  9. TraDaToR

    TraDaToR

    Long Oct / Short Apr in the overnight session.:)

    Planning a short Corn / Long Cattle for next week.
     
  10. TraDaToR

    TraDaToR

    #10     Jun 17, 2011