Like a moth to a flame, the front of the MGEX wheat market was drawn higher by fresh highs in the cash market. This pulled the MGEX higher on the intermarket spreads vs CBOT wheat as well, though not dramatically; even with cash Spring wheat at $2.45 premium to Soft Winter wheat, July MGEX traded mostly around $1.10 premium to CBOT.
While oats failed to improve vs the pricey corn market, CBOT wheat gained about 2% vs corn. I know that the nearby wheat is very cheap compared to corn, but I am happy scaling out of my long CBOT wheat/short corn position without being too greedy. This is an old crop spread where the inventories are what they are and corn inventories are much tighter than soft wheat stocks.
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