After a 2-3 week break from hectic wheat futures action, I have resumed trading...putting on both long Dec11 and Dec12 MGEX vs CBOT positions. With the Dec11 MGEX at a lofty $1.70+ premium, this doesn't qualify as bargain hunting.
Still, the futures curves still favor this position. Tight nearby supply has Sep11 MGEX trading at around $2.40 premium to CBOT. And while the MGEX Dec11 contract is trading at even with March, the CBOT Dec11 is at over 35 cents discount to March with another 30 cents of downside to full carry...
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