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.
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.
I think I agree with you, corn may go down, but I need wheat to go down less that's the problem... And I am super bad at directional calls...LOL
What happened in the SPAN ratios lately? I just wanted to check if I can still use my old ratios and here is what I see :http://www.cmegroup.com/clearing/margins/inters.html#e=CBT&a=AGRICULTURE&p=all 5 Soybeans Vs 1 soybean meal ??? 10 corn Vs 1 Live Cattle for a margin credit of 0 %???