Calendar Spreads Dominate Wheat Futures Trading

The contango on CBOT wheat continued to shrink today with a scramble at the closing bell. And the Dec11/Mar12 backwardation increased on MGEX to over 65 cents. The intermarket spreads were somewhat mixed with the MGEX weakening on all but the nearby Dec11 contract. Given that the outright markets traded around the unchanged level for much of the day, I didn't regard the drift lower on the MGEX intermatket premium as being significant--cash levels for Hard Red Spring Wheat stayed very strong.