Tight Ranges

All the grain markets appeared to mark time waiting for Wednesday's farm data. Nothing to fear from weather right now...some news reports that India may release inventory onto world markets... There isn't any bullish news anywhere in wheat world.

Over the past few days we have generated slightly negative numbers trying to daytrade the intermarket wheat futures spreads. Given the 1-1.5 penny range on those spreads, it's not surprising we haven't been able to scalp effectively.

More positively, we have had the general drift right on "core" positions--long MGE and KC vs CBOT in the front May contract and in the calendar spreads where we caught a few cents of steeper contango on Sep/Dec CBOT. The levels are less attractive now, so we are scaling out of these positions.