Cost of carry in CL

That is also true..

Cotton is a special market and i did not really trade it.

Bone, i know you are a big spread trader, just wandering how the last few years was performing for you. For me were more flat. The money i made the money i lost.. i end up in positive but flat.

Or course i do not want you to tell me numbers but maybe markets and which better and which under performed.

Just wandering... so of course i understand if you do not what to answer the question.

Thanks

Greg
 
Last few years have been very good from clients who have provided feedback. Most clients are good about providing feedback, but some are tight-lipped and that is entirely their prerogative.
Being selective and playing in parts of the curve where there is more commercial OI than spec involvement seems to help consistency for my clients.
 
Everything intramarket. I encourage / insist / nag / bludgeon my clients to not specialize in a singular name or market per se. I want them to swing trade just about anything liquid and electronic.
 
WOW, is what i am missing!!! I am more inter market spraeder!!! I was not able to find any good inter markets to trade!!! will look and see what can i do..

Thanks

Greg
 
bone said:
Well, even if all the or a majority of the "knowns" are known, a perfectly reasonable basis differential can get blown to shit - even in softs and grains. I submit for your consideration Louis Dreyfus and the 2011 Cotton Market. Took futures contracts into delivery at a price point incredibly rich as compared to the OTR CTD grade. Crushed the other commercials. Market hasn't been the same since. Not close.

Mav makes a great point about oil. Actually, much of the Middle Eastern and South American crude is quite "sour". The PEMEX (Mexico) crude trades at a very cheap discount to WTI with the Gulf Coast refiners and distance is not a great factor per se. Problem is, refiners require deep discounts to undertake a refining run where their catalytic crackers have to sort through alot of trash like sulphur in order to get to the lighter distillates. There are, literally, dozens of grades of crude.
More...

oh boy do I remember that year in cotton. I'm not a cotton trader, but live in "cotton country". First time I can remember that there were actually defaults on physical forward contracts from the buyers back to the gins/warehouses. Big uproar out here when some $2 cotton became $1.10 cotton. Do keep that in mind...the fallout from some of these deals goes WAY beyond whats on the screen, but WILL ultimately affect how your mkt trades going forward.
 
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