The recent trend where MGEX has strengthened versus KC and Chicago seems to have ended. I don't any screaming bargains there. I do like buying the March/selling the May in KC and Minneapolis wheat futures. Considering that the outright price still reflects substantially lower inventory levels from a year ago as well as strong global demand and also a not-so-strong dollar, I think buying March KC at almost 9 cents under May is an attractive risk/reward proposition. The downside: a 3 cent loss.
Posting here is going to be spotty through the holidays--especially if these calendar spreads are my only position.
I do also have the small long ethanol/short corn position, so hopefully, I will think of something worthwhile to write about there.
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