Ag trade ideas

Full financial carry is the cost of getting the commodity delivered at the first expiry, stored and redelivered at the further expiry. If the spread goes over full carry, physical players can make a risk free profit by storing the goods, so it rarely happens. You can make a reasonable assumption that there is more chance the spread will revert and go higher.
 
TraDaToR said:
Full financial carry is the cost of getting the commodity delivered at the first expiry, stored and redelivered at the further expiry. If the spread goes over full carry, physical players can make a risk free profit by storing the goods, so it rarely happens. You can make a reasonable assumption that there is more chance the spread will revert and go higher.
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Thank you for the definition. Are you getting your carry values from DTN ProphetX?
 
TraDaToR said:
Full financial carry is the cost of getting the commodity delivered at the first expiry, stored and redelivered at the further expiry. If the spread goes over full carry, physical players can make a risk free profit by storing the goods, so it rarely happens. You can make a reasonable assumption that there is more chance the spread will revert and go higher.
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Again, thank you TraDaTor. Great insight.

kanellop said:
Here are some data:

1) https://www.elitetrader.com/et/threads/wheat-calc-the-cost-of-carry.80938/

2) https://www.cmegroup.com/search/?q=VSR

3) https://www.cmegroup.com/trading/agricultural/files/vsr-calculator.xls

I hope to find it helpful.

Kind Regards,

George Kanellopoulos.
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Thank you George
 
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