Discussion in 'Commodity Futures' started by Jahajee, Sep 3, 2008.
Maybe I am a bit too early but it appears as if wheat may be bottoming at these levels, comments?
Cash basis is still huge at most locations. Lots of wheat out there and speculative catalyst is nil, look for greener pastures unless the dollar crashes to new lows.
I agree with the guy above me couldn't remember your name lol) Wheat looks good where I'm at, although my buddy down in CO who is a fairly large wheat farmer said the protein wheat around where he is at isn't the best. A good way to play this would be buy dec KC sell dec CHI. I have been in it fora while and it still looks good to me
Wheat has tended to make a well-defined "seasonal bottom" in August and then rally into October and February because of export developments and weather concerns with the upcoming winter crop. Even though wheat prices are "high", you have to be slightly bullish at this time and level with the re-test of August's lows.
Similar breakdown in bean oil.