Long Sep Wheat / short sep Corn

Quote from 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.
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I would be short on both commodities by selling far OTM 3 month call options on their futures contracts. The tide is going against them IMO so I would just go with the flow.
 
this W U1/C U1 spread is shown on mrci and I considered it a little. My personal opinion is there is constant pressure on long wheat due to that variable storage rate mechanism. Local's posts in this forum pointed to this. Thus even wheat is more "valuable" than corn, I believe one should stay away from front month long wheat.
 
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