Long Sep Wheat / short sep Corn

TraDaToR

TraDaToR

Hello,

I have this spread right now on my seasonal radar, but I don't know if it is the good year to put it.

Corn has overperformed wheat a lot in the last year and they are pretty much on par right now. According to some article, wheat starts to be used as a replacement to feed cattle. Sep Corn is an intercrop month and at a premium to the new crop.

So what do you think? Will wheat continue to plunge while corn rises or is this an occasion to place a "reversion to mean" trade?

Thanks.
 
I'm heavily short Sep Corn from about 720 on average. I think the US Dollar has turned and together with seasonal factors this should drive the contract down to 600.

I don't really have an opinion of the Wheat-contracts right now.
 
I think I agree with you, corn may go down, but I need wheat to go down less that's the problem...:D And I am super bad at directional calls...LOL
 
Quote from emg:

focus on the live cattle spread for now
More...

Long Oct / Short Apr in the overnight session.:)

Planning a short Corn / Long Cattle for next week.
 
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