The most recent CFTC COT report showed managed money increasing thier short positions in CBOT wheat; this may have been related to CBOT wheat working its way stronger vs MGEX wheat and CBOT corn through the day. There were no major changes: nearby Dec CBOT wheat remains at a discount to corn and deferred CBOT contracts narrowed the MGEX premium to around 70 cents.
With the short positions in Dec CBOT wheat and the dropoff in passive commodity investment, I expect the Dec/Mar CBOT spread will not be blowing out to "super-contango" levels as we have seen in the past. In fact, I suspect there may may a little bit of a squeeze on Dec shorts coming up next week.
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