Apparently defying the CFTC's wishes, the Grain Service newsletter reports that the KCBT is instead considering a rise in storage charges to 6 cents/month with a seasonal 3 cents/month surcharge from July through November. The KCBT wheat contract committee expressed concern that a change to VSR could negatively affect liquidity; this fear has been addressed at the CME in this study which was published back in July. To my knowledge, the MGEX has not considered any changes to its 5 cent/month storage rates.
Dec MGEX moved to the highest level since June against the CBOT trading at a 53-55 cent premium for most of the day. A couple of cents of today's move was due to the steepening of the CBOT contango relative to MGEX. Intermarket spreads further out, say in Dec11, didn't move from recent ranges.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment