Soy Product Spread

Discussion in 'Commodity Futures' started by stoic, Feb 16, 2012.

  1. stoic

    stoic

    Long Jul. 2012 Soybeans @ 1277.50

    Short Jul. 2012 Soy Meal @ 337.30
     
  2. bone

    bone

    I like that trade. Well done. Especially if we get some further settlements above that trendline.

    I would do that spread, but I am already long July-Nov Beans and I would not want to compound forward curve risk in that space.

    Good eye.

    I'm long May-July Sugar as well, but it does not appear that those forward curves correlate to US Grains to any extent.
     
  3. stoic

    stoic


    Exited positions @ 9:50 CT

    Sell to close Jul 2012 Soybeans @ 1392.25

    Buy to Close Jul 2012 Soy Meal @ 378.90

    = gain of $1,577.50 per spread.

    Biggest draw down (based on settle price) -$50.00 on 02/16/12
     
  4. bone

    bone

    Stoic,

    Great call on your spread. Good one - I had seen that one, liked it, but didn't want to compound the long forward curve risk I already had going on in the US grain space even though yours is clearly a crush and the dynamics for products are clearly a bit different. I got out of my long Soybean July-Nov Calendar and the Sugar #11 May-July Calendar last week.

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