Both Ethanol and Oats were about unchanged on the day as Corn rallied a further 2%. I dumped the ethanol position. For now, I will keep the Oats. Maybe the oats resistance at $4 will break or maybe corn turns lower... I don't think I will keep this one if it doesn't turn around quickly.
Just as I usually add a "tail hedge" on intermarket wheat spreads, in retrospect, I should have carried a bit more on the Ethanol and Oats longs than the Corn shorts to account for the higher corn volatility.
As DTN's Hard Red Spring index for cash markets hits $1.65 over Soft Red Winter, I had to jump back in the long MGEX/short CBOT spread--this time with July MGEX at 73 cents premium.
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