Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I had several buy orders from 12.5 downwards. Was a bit early, but you never know.
I intend to hold this spread longterm through the South American growing season. In case La Nina gets reality and there is severe dryness in Brazil, the spread should move upwards strongly. If not, it should still make some money, according to the seasonals.
Best regards, Myrrdin
Can you help answer these questions from other members on NexusFi?
An interesting piece from Kevin Muir on grains in the second half of his post. The overall inflation theme creeping into markets could see the grain market get some bids.
The next USDA Report will be published on October, 12th. The October Report is among the more important reports as the first (more or less) reliable figures for the crop size will be published. I suggest to keep lot sizes small as this report can be a market mover.
I am bullish for the next couple of months as long as there is a high probability for La Nina to occur. Soil in Brazil already is dry, and further dryness will cause a relatively small crop. Remember: Brazil supplies a significant share of the world-wide crop.
I currently hold the following positions in grains & beans:
KWN-WN
Longterm trade.
Seasonality is favourable according to MRCI data.
KWZ-MWZ
Longterm trade.
Last year there were problems regarding Minneapolis Wheat. The spread for the next crop looks severely overvalued. It is important to keep lot size small as MW price can move upwards severely.
Seasonals look positive for the next couple of months.
Weather is hard to predict and can influence the crop severely.
Problem: In case weather is fine for the crop the spread will move further to the downside, as it did in 2017.
I will set up this trade via options, eg. buying the SN C1000 and selling the short-dated SX C1000, expiring at the same time as the SN call. This spread is currently sold for 6 c.
In case the spread moves downwards both options should expire worthless. Thus the risk is small.
As always questions and comments are highly welcome.
Act to George angell, buying Chicago wheat and selling Kansas wheat March 1 and liquidating June 1 is the trade the examples from the book real time commodity spreads are all from 70s and 80s .. @myrrdin looks like u have the opp trade unless I am totally wrong