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Ontario's middle east | That spread is probably not going to do a whole lot mainly because March will be in delivery in a month. With these big stocks we should see a bigger carry than that but spreads are much more about cash movement and slow farmer selling doesnt give the front month pressure needed to build the carry. I suspect that spread as we approach H FND, will narrow.... Contrary to what we should see with big stocks. Funds work the front months for liquidity so i suspect we see them roll there positions forward. To do that they simultaneously buy the march and sell the may. That tends to influence the whole spread structure right to new crop sometimes. You really need to break it down and look at H-U , then U-Z. Someone has to carry an azz load of corn from old crop to new crop. I wouldnt rule out seeing 15c carry u-z come summer..... What my swashbuckling type call the stop selling corn and keep building bins sorta deal... What say you Ray, Rob, tara ? I got a bad cold, is my fever spiking and hallucinations kicking in???? | |
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Mar - Dec corn spread.
