After having been shaken out of long MGEX/short KC and CBOT wheat positions two long weeks ago, once again I am grasping the high-protein, spring-planted MGEX and shorting the CBOT. Since I don't want to get pushed out of this position by mark-to-market misfortune, the positions are more modest this time. Also a bit farther out on the futures curve.
Pro: Very tight MGEX calendar spreads indicate little supply.
Con: Speculators covering short CBOT could drive that up faster. Also, a corn rally could drive CBOT up faster.
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment