As I mentioned yesterday, I want to put on some long July MGEX wheat / short KC for similar reasons to my positioning in MGEX/CBOT. The carry cost for KC goes up starting in July to 9 cents/month while MGEX stays at 5 cents/month. Also, cash Hard Red Spring wheat is about $2.00 over Hard Red Winter wheat, so I think time is on my side buying the July MGEX at only a bit over 30 cents/bushel premium to KC...but I could have had it yesterday a nickel cheaper.
Sure, the risk is still there, but I don't have to hold it for 20 cents against me, I can exit sooner if i like (hopefully).
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment