Corn's Perfect Storm

If corn gets near wheat, bet the farm on a buy wheat sell corn spread. That same fucking spread corn/wheat cost my trading partners and I about 150 k. Time to make it back with interest :)
 
MUMBAI, June 13 (Reuters) - Indian corn futures surged to fresh highs on Friday afternoon after U.S. corn futures, rallied to record highs for a sixth day on Thursday, as worries about poor weather hurting the U.S. crop continued, analysts said.

At 2:53 p.m, July futures NMZN8 rose 2.13 percent to hit a contract high of 960 rupees per 100 kg, on the National Commodity & Derivatives Exchange (NCDEX).

Combined open interest of the commodity stood at 34,400 tonnes on NCDEX, by 2.54 p.m.

Spot prices rose by 7 rupees to 869 rupees per 100 kg in Nizamabad, a major trading centre in Andhra Pradesh state.
 
Quote from Rtrader2525:

If corn gets near wheat, bet the farm on a buy wheat sell corn spread. That same fucking spread corn/wheat cost my trading partners and I about 150 k. Time to make it back with interest :)
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Lol, you don't think the spread will blow out during a raging corn bull market? Feel free to step in front of that freight train if you must, but don't try and take a bunch of noobs with you.
 
Quote from Rtrader2525:

I like selling a 750 straddle, gives u nearly 2 bucks premium. ran ge of 5.50 to 9.50 by dec? any thoughts?
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My thought is that during a raging commodity bull market, selling straddles is kinda missing the wood for the trees.
 
cutten I guess I don't understand your analogy lol. I just feel like a range from 5.50 to 9.50 from now until the middle of novemeber is probably going to be "safe" Everybody is freaking out about the corn situation, and I agree that what is going on in Iowa and the midwest is a tragedy and it is hurting yields but look at july/dec its at Full carry! No urgency to hoard corn commercially, ZERO. I think the sep/dec will go full carry as well. Read between the lines. Anyways hope everyone is having a good weekend!
 
with that said i'm still very very bullish corn, I just don't think it has the legs to get past 9.50 but I could be wrong it has happenend before. and yes the wheat corn relationship still exists (barely after wheat getting 6.00 over corn) but it still exists
 
Quote from ess1096:

I wonder how the following story out of China will affect prices Monday.


China’s wheat crop to delay corn imports

HONG KONG: China’s bumper 2008 winter wheat crop will help stave off corn imports this year, relieving one source of concern for soaring markets, but its return as an exporter looks equally unlikely, traders said.

MORE HERE:
http://www.dailytimes.com.pk/default.asp?page=2008\06\15\story_15-6-2008_pg5_21
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My opinion is that the story is a gross exaggeration to see if the Chinese can force a slight pullback in corn so they can buy the crap out of it, saving a few million Huan.

The Chinese people are wonderful but their government is as trustworthy as ours.
 
waiting for "spike high" candles on the dailys and or weeklys for corn

this thing will at some point retrace like a mofo.....
 
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