classical "trading spreads and seasonals" by Joe Ross
there is a little bit about seasonality in "The Complete Guide to Option Selling".
Also this thread and site (but they are in russian, i don't know how easy it would be to read ii using google translate) http://profitseasons.ru/...
I don't think many farmers have multi-compartment grain storages and blending facilities.
Elevator discounts are highest at harvest, then they decrease. Maybe it would be reasonable to sell it later this MY, i don't know.
And what the problem with vomitoxin? 2015 average is 2.2 like previous...
"The soft red winter wheat crop, the type traded in Chicago, was, unusually, graded 3 overall – below the level needed to meet delivery against futures, without discounts."
So, one can deliver his bad wheat, but he will get paid less
let's recover the topic. NG X-F
We are near good resistance, bearish seasonality is starting, although i dont know fundamental reasons. I will consider short near -0.240
Maybe a good short term idea. That was written 5 days ago
"Look for a spot to bull spread Sept/Dec meal next week after open interest from the Sept options comes off. Buy a break into the 7.00 to 9.00 area on Sept/Dec or buy the Sept/Oct/Dec butterfly around 3.50."
Don't understand the reasons...
Going to buy mwz-h (@-17.00)
Seasonality is up for september (although it didnt work good for hrs and hrw lately). Harvest progress is ahead of 5-year average.
It looks like seasonal move starts often after harvest is near 80% complete, so it's the time
also we are near historical lows...
Kinda interesting article about profitable investing strategy, based on calendar spreads
And some interesting excerptions:
"As we detail in Section 3 the rebalancing process is carried out using calendar spreads. This becomes particularly obvious when comparing the amount of noncommercial...
Found on twitter
"So if this corn crop's about the same maturity as '14, bit lower g/e, & little lower yield what's w/ all the brown?"
most producing states
speaking about exports
you can see the decline of hrw export is bigger. So demand is lower. Unfortunately, i've thought 'bout that after i've got stopped out again.
Maybe coz of tighter srw supply and lower wheat export because of higher price (hrw export is near 45% of production, srw is near 30%, so drop of export impacts on kansas more)