2013 Grains and Oil Seed Spreads

Quote from cdcaveman:

sounds like the same contract at different exchanges.. whats the risk?
More...

The quantities and delivery months are the same, but these are three distinct classes of wheat.

CBOT/CME = Soft Red Winter wheat (SRW)
KCBOT/CME = Hard Red Winter wheat (HRW)
MGEX = Hard Red Spring wheat (HRS)

They have different growing regions and seasons, different logistics and export points, and different protein and baking characteristics which determine the best end use - pasta vs. cookies vs. bread flour, for example.

The spread trade between the three classes is fairly active, esp. SRW vs. HRW. SRW or HRW vs. corn is also popular.
 
Quote from Brighton:

The quantities and delivery months are the same, but these are three distinct classes of wheat.

CBOT/CME = Soft Red Winter wheat (SRW)
KCBOT/CME = Hard Red Winter wheat (HRW)
MGEX = Hard Red Spring wheat (HRS)

They have different growing regions and seasons, different logistics and export points, and different protein and baking characteristics which determine the best end use - pasta vs. cookies vs. bread flour, for example.

The spread trade between the three classes is fairly active, esp. SRW vs. HRW. SRW or HRW vs. corn is also popular.
More...

Yes that was my question... thanks
 
Jan. 2013 Soymeal vs. Jan. 2013 Soybean.

Chart Values in Dollars - Soybean Meal less Soybeans.

Example:
7/11/12

S price = 1519.75 x 50 = $75,987.50
SM price = 434.3 x 100 = $43,430.00
all my spread charts are Long - Short

= Equity value of ($32,557.50)
 

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Quote from stoic:

Jan. 2013 Soymeal vs. Jan. 2013 Soybean.

Chart Values in Dollars - Soybean Meal less Soybeans.

Example:
7/11/12

S price = 1519.75 x 50 = $75,987.50
SM price = 434.3 x 100 = $43,430.00
all my spread charts are Long - Short

= Equity value of ($32,557.50)
More...

i understand the mechanism behind the madness in trading materials against what they produce.. ie crack spread.. and for example your soybean deal here.. but what constitutes good entry.. just an eyeball view on a chart or the weather? or just some historical view on the correlation and how far the spread is apart currently.. i'm very curious about this..
 
Quote from cdcaveman:

..what constitutes good entry.. just an eyeball view on a chart or the weather? or just some historical view on the correlation and how far the spread is apart currently.. i'm very curious about this..
More...

Getting historical "global" weather info that may affect the soy complex would be difficult at best. So I would have to say that the historical view of the trends and the extremes in the spreads about it.

The other soy product spreads I track are:
BO u vs S U, S H vs BO H, S N vs BO N, S N vs SM N, S X vs SM Z, SM N vs BO N, SM Q vs BO Q, SM U vs S U, SM V vs BO V, and SM Z vs BO Z.

Other Soy Spreads I have are: Soybeans K vs X, N vs X, Q vs H, U vs K, X vs N, Soy oil F vs N, Q vs Z, U vs V, U vs F, Meal N vs U, N vs Z, Q vs H, Z vs N. and all the crush.

All data back to 1975

The attached pdf shows the extremes for the Jan SM vs. S for 2000 through 2013
 

Attachments

Hello Again.

I believe that have start hitting the Drums for something that consume the People around the Globe.

Russian's this marketing Year have exported huge quantities of Wheat,

possibly because had and still have adequate supplies of the True Gold.

But, exist some tiny News in the today's, 22 January, 2013, Inside Agriculture Report of Thomson Reuters,

relative with something.

Here are:

-----

Russia not ready to lift grain import duty-deputy PM

Russia is not ready to lift a grain import duty to ease tight domestic market conditions after last year's poor harvest,

Deputy Prime Minister Arkady Dvorkovich said on Tuesday.

The government is holding preliminary talks on a possible decision to lift a 5 percent grain import duty

to help ensure adequate supplies after a drought and heavy export sales,

an Agriculture Ministry spokesman said on Monday.

Moscow surprised markets by keeping the export channel open despite last year's poor crop.

That was in contrast to its imposition of a one-year export ban in 2010 that,

officials now concede, stoked inflation.

Russia has already exported 13.7 million tonnes of grain in the current 2012/13 crop season

which started on July 1 - a level that has left domestic stocks looking tight and forced up

local wheat prices to the point where it has started to become profitable to import.

-----

Kind Regards,

George Kanellopoulos.
 
Hello Again.

Just receive the Today's 22 January, 2013,

Midday Report from the Kansas City Board of Trade ( KCBT ):

-----

KC WHEAT REVERSES ON THE PIT OPENING

Kansas City wheat futures traded higher earlier this morning on continued concerns regarding dry weather in U.S. HRW wheat areas

before turning lower after the opening of the pit session at 9:30 a.m., according to traders.

The U.S. Dollar was trading lower earlier, also lending to the original supportive tone.

Cold weather in Russia also continues to be a concern for the wheat crop.

Russia's Ag Ministry is estimating 9% of the crop damaged by winter-kill, according to traders.

After moving lower, stops were hit in the market on the way down, traders said.

KC Mar wheat was 7 1/4 cents lower at $8.36 1/2 at midday.

CASH GRAIN: There are quite a few cars in the marketplace and the basis feels steady to possibly weaker, according to traders.

-----

Kind Regards,

George Kanellopoulos.
 
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