Ag trade ideas

Wheat Calendar Spread Pair, as documented here earlier and was shorted by some of my clients in the Feb and early Mar time frame, has hit it's profit target earlier this week.

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I had a couple brave souls get long a Lean Hog butterfly a couple of weeks ago - nothing doing as of yet. Personally, this trade does not stir my soul in the least.

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I know this is an interest rate spread, but I wanted to show a trade that stopped out for a loss according to our system rules. Euribor Butterfly, taken as a sell by clients and documented elsewhere on ET here in February, was stopped out for a loss the second week in April.

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For the guys who do native exchange traded spreads are the commissions usually double to account for both legs? Is it treated as a real separate instrument by the exchange where each leg cannot be managed individually or is it really just an exchange provided instrument to remove legging risk and that's about it?
 
i960 said:
For the guys who do native exchange traded spreads are the commissions usually double to account for both legs? Is it treated as a real separate instrument by the exchange where each leg cannot be managed individually or is it really just an exchange provided instrument to remove legging risk and that's about it?
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1. The commission is not "round turn"; just for the individual buy and sell component contracts executed in the exchange spread combination.

2. You can leg out of an exchange spread provided that the instruments being closed out are identical. You can also execute calendar spreads and roll individual legs.

3. The advantage to exchange spreads is execution and slippage risk ( legging ). You don't need to leg or use automation for trading them. Another advantage is that exchange supported spreads appear in the order book, or ticket, or DOM window, as an individual price ( the collective spread differential ). In other words, for that Liffe Euribor spread I have above, the market would be -75 bid and -74 offered. Once executed, my fill window will have all three spread legs listed by quantity and price - and those exact quantities and prices will appear on your daily statement. Furthermore, that singular exchange supported spread will accommodate all of the types of orders that singular flat price futures ( like ESM5 for example ) use. So, for that Euribor butterfly exchange spread, I can use FOK, OCO, MOO, MOC, limit, stop limit, etc. etc.

4. Depending upon your execution platform and FCM, you will have to ask the firm's Risk Manager to enable your platform settings to receive exchange supported spreads. There are, literally, hundreds if not thousands of them depending upon the exchange product portfolio.
 
Another article about why it makes sense to short new crop soybean or just be not so bullish about beans . The Argentina and Brazil strikes can not last for long and China demand for US bean will soon be switched to SA http://seekingalpha.com/article/311...-more-likely-for-2015-and-bearish-for-soybean
TraDaToR said:
Long Jul Soymeal/ Short Jul Soyoil @ 12572. I am quite heavily long meal / Short oïl in my portfolio now. There is a threat threat of slowing meal demand because of Avian flu but at the same time there is large demand for soy. Big exporter sale just reported...
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