With buyers on the CBOT due to non-commercial short-covering ahead of the USDA report Thursday and also an annual commodity index rebalancing, the MGEX did not keep pace in today's rally. But maybe it's worse than that; the cash market premiums have fallen just as fast and the calendar spreads' backwardation has nearly disappeared.
So...not much demand for cash spring wheat and futures markets focused on buying CBOT has been a recipe for disaster for long MGEX/short CBOT positions like mine. Oh dear.
I've cut half of it and kept only July12 MGEX--which is at a reasonable $1.20 premium at this stage. At least i think it's reasonable
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