MGEX News

The Minneapolis Grain Exchange is going to have a vote in May on changing status from Minnesota non-profit to Delaware corporation. Initially this will allow for distributions to members, but more significantly, would greatly facilitate a sale/merger.

No significant position updates. We "earned" about 33-34 cents to roll our KC vs CBOT position forward from July10 to July11. With the flatter CBOT contango, that roll is only worth about 30 cents now. And while being out a year forward has reduced the volatility of our intermarket spread position, I am less comfortable with the forward CBOT short as that contango flattens. I think it is virtually certain that the VSR will push CBOT rolls for the period July10 to July11 to at least 17.5 cents more than KC and highly likely that the rolls end up costing at least 35 cents more on the CBOT than the KCBT. So I am going to roll that intermarket spread back to the front month around current levels.