Timid Trading

Flipped 4 spreads for about 1/2 cent net, so that's about $100.

The "strategic" positions--long KC and MGE vs CBOT in May--were under pressure for most of the day as the outright wheat price rallied at the open and held good gains until about 5 minutes before the close. Hard to say why the wheat market was strong: maybe unease over growing "non-commercial" shorts on the CFTC Commitment of Traders report, maybe strength in the equity and "risky" asset markets, who knows.

Spring flooding doesn't look like a problem, but there is plenty of moisture to set up a good spring growing season for winter wheat. Should be plenty of wheat around all year.

May MGE stayed around 25 cents over CBOT; May KC still around 7 cents over CBOT. The only unusual thing in our universe was some interest in Dec10/Dec11 CBOT--there was an order showing 20 lots of interest to sell Dec10/ buy Dec11 at 80 cents (premium Dec11)and about 10-15 traded there. We already have a short Dec10/long Dec11 position at about that level. We'll see if the interest continues and/or grows tomorrow.