Same recap as yesterday. Trend-following money managers liquidate their front-end of the market CBOT wheat shorts--pushing July CBOT higher against December and further back months and higher against MGE and KC wheat futures. We took the opportunity to add to our calendar spread exposure on CBOT wheat: short the front, long the back months.
News developments continue to be negative for wheat. India may wait until fall to make a decision, but they are considering allowing exports of wheat, which has been banned since 2007. Storage capacity is reported to be completely full in India, with a significant amount being stored in the open.
Needless to say, the strength of the USD will not help US exporters of wheat. Once again, I expect that the CFTC COT report will show that commercial sellers have replaced a good portion of the non-commercial shorts at current levels.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment