Yesterday's rally in MGEX wheat futures was not likely related to MF Global liquidation, since open interest rose sharply. Therefore, yesterday's buying of MGEX futures, included deferred contracts like Dec12, represented new positions.
So I ventured out to re-establish long MGEX positions in March12 and July12. The levels aren't exactly what I would like, but they are a lot cheaper than cash levels for Hard Red Spring Wheat. I am beginning to shy away from Dec12 due to the rules change which allows non-US origin (Canadian) wheat to be delivered. If Canadian wheat is allowed, then I can only assume (with greater supply and unchanged demand) that prices may drop.
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