While MGEX was steady to firmer against KC for most of the day, MGEX weakened throughout the day vs CBOT. While only yesterday I said that I was more comforable with the levels of the intermarket spread between MGEX and KC, today I felt compelled to put on a long MGEX/ short CBOT position. I am not willing to take much pain on this one though.
Also, I bought Dec/ sold March in KC wheat and CBOT corn anticipating a bounce in spread levels once the index rolls are done. Also dipped a toe in MGEX long Mar/ short May as that is 73% of full carry; so a limited downside and good potential if the wheat market turns stronger again. (As if $8/bushel isn't strong enough.)
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