The relentless climb of Dec MGEX vs CBOT halted today. After the debacle this summer, I don't have much appetite for fighting a bull market on the CBOT. So I lobbed out some of my Long MGEX/Short CBOT position today and will pitch the rest out Monday unless there is some change in direction.
While I would like to be selling Dec MGEX at the 75+ cent premium the DTN cash market shows as the premium to cash Soft Red Wheat, it does look attractive to replace the Dec10 MGEX/CBOT spread with Dec11 spreads. Dec11 MGEX continues to trade at a small discount to CBOT.
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