AgTalk Home
AgTalk Home
Search Forums | Classifieds (22) | Skins | Language
You are logged in as a guest. ( logon | register )

How can we capture the inverse in the SB
View previous thread :: View next thread
   Forums List -> Market TalkMessage format
 
Conan the Farmer
Posted 1/19/2017 09:17 (#5778717 - in reply to #5778656)
Subject: RE: How can we capture the inverse in the SB



South Central Iowa
Well shorting Nov 17 would be hedging your 17 crop, I don't think you could construe it make it hedge your 18 crop.

If you are wanting to play that price ratio, I would do the corn bean spread. Buy 2 contracts of corn and sell one of soybeans. But I would do any of that "speculative hedging" lol in this crop year or the Nov-Dec at least. Those outlying months in 2018 are very low in liquidity and will not see the same movement that front months and the new crop month do.

I will tell you for a day the other day, I was long July Corn and short March Soy. I don't think it a bad trade to bull spread corn to soy in July. But today is not the day for it. Corn is at the top of its range and kind of showing it can't break through. Soy broke through a six month range, but showed it can't take off. That was the most concerning thing yesterday. Soy makes 6 month high and couldn't pick up a single penny with out a great grind and struggle. I am short both right now.
Top of the page Bottom of the page


Jump to forum :
Search this forum
Printer friendly version
E-mail a link to this thread

(Delete cookies)