Does wheat seem very expensive relative to corn right now? Any thoughts on why?
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Wheat/Corn ratio
- Thread starter runningman
- Start date
Yes but buying corn and selling wheat right now is like standing in front of a train. Until the recent rally in Chi wheat reverses (which it may have after Friday, but i doubt it) you dont want be short. Problems with vomitoxin in the US SRW crop and drought in Russia and Kazahkstan (spelling?) not to mention huge fund buying have shorts running. The deal is chi wheat usually out paces corn and the other wheats in what ever direction it is going(fund money), so once it starts to break then you should get short Chi vs Corn, Minney, and KC.
What's the largest you've ever seen the W:C ratio? On average I'm guessing its around 1.3. At what point does it get so high that farmers switch crops?
Quote from SpreadTrader01:
Yes but buying corn and selling wheat right now is like standing in front of a train. Until the recent rally in Chi wheat reverses (which it may have after Friday, but i doubt it) you dont want be short. Problems with vomitoxin in the US SRW crop and drought in Russia and Kazahkstan (spelling?) not to mention huge fund buying have shorts running. The deal is chi wheat usually out paces corn and the other wheats in what ever direction it is going(fund money), so once it starts to break then you should get short Chi vs Corn, Minney, and KC.
Where do you get your news for the ag markets? What are you checking?
DTN ProphetX and I know people in the business.