a good article on the basics of trading ZC

[cdcaveman]

http://stockguy22.com/grain-markets-old-crop-versus-new-crop/

i'm not sure what you guys think about this call.. he is fading the front month n, or "July' here and buying z, "Dec"


i'm not sure how you feel about this statement.. being "max" risk..

"For this trade I would be looking for the spread -150 to hold and on test or a rally over -140. Risk from here is around 10 points @ $50 a point ($500), so you have the option to give it some room and risk $750-$1k per spread. You can also wait for a pullback or breakout."

 

[cdcaveman]

quite a good call..
first chart is the more recent chart of the spread talked about in the article..
second is the curve as of the close...

 

[lx008]

Guess if the flood is materilazed, some people may do the good old soy-corn spread trade, betting on the spread between soy and corn to narrow(from around 690~700 to around 500~600).For there're some corn acreage will finally turn into soybean.

 

[cdcaveman]

Quote from lx008:

Guess if the flood is materilazed, some people may do the good old soy-corn spread trade, betting on the spread between soy and corn to narrow(from around 690~700 to around 500~600).For there're some corn acreage will finally turn into soybean.

yeah.. you don't like trading in the term? or do you combine that with yoru views for say corn/soybean