On a day when broad commodity indexes like the old CRB (now called the Continuous Commodity Index) posted gains over 1%, CBOT wheat stayed within a few ticks of unchanged for the bulk of the day. The premium for Dec MGEX over CBOT stayed up near 58-59 cents. I continued to add to that position today. The difference between the Dec10/Dec11 carries for CBOT and MGEX continued to increase-stretching to over 60 cents at the close. The differences in the carries can manifest themselves in a variety of ways, but I am betting that there will continue to be a lot of pressure at the front end of the CBOT market.
I am also long both Dec Oats and Ethanol vs corn--looking forward to earning as those positions roll forward, particularly on the ethanol which is in backwardation.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment