Switching Out of KC and into MGEX

With KC at the high end its range vs CBOT and MGEX nearer the low end, I made a switch. Though MGEX is at a far more elevated premium on an historical basis, the calendar spreads have remained tight and inventories are leaving Duluth once again.

Another interesting calendar spread is over in Soybeans--the crop isn't small and there should be plenty of supply, but March12/May12 beans are at the cost of storage, though only about 75% of full financial carry (calculated on 2% over Fed Funds). So that spread could go to 14 or 14.5 cents, but this seems like a cheap way to play for a rally in grains.