Leaving before the Party's Over

We took off 75% of our intermarket risk and 100% of our CBOT calendar spreads. We kept the KC July10/July11 calendar spread which is at full carry.

Unsurprisingly, the wheat market headed lower from the open with all the other commodities and equities...but it didn't go far, and soon enough we were back at unchanged. Buying was strongest in KC and MGE with those markets up 1 or 2 cents for most of the day. Though I try not to predict the unpredictable, i.e. turns in the market, fear (or caution) drove me to cover at attractive, not-at-all painful levels.

We'll take a fresh look at the market tomorrow.