The futures markets seems to be anticipating tighter supplies ahead, but is not at all worried about the short-term. For example, May/July MGEX wheat is at even, and July/Sep Rice is in backwardation, yet in both cases the nearby March/May is headed to full carry.
There's nothing wrong with that, but given the extremely bullish price action recently in both wheat and rice (along with corn and beans), long March/short May looks like a very cheap option to play the upside.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment