|
| Maybe last year's number was too high as corn here in the eastern belt was trading at 40 over the Dec this time last year, harvest is also a month and a half earlier this year which has a great impact on cash market strength, as we are using over a billion a month so corn coming at the market a month early is a big deal. IN 95 basis was sloppy at the start of harvest by the next summer you could trade $1.50 over if you had corn. You had better check with your lender if your getting short multiple years as they can get pretty skittish when the margin calls are north of six figures a day Tara. I don't profess to know where this market is headed, but if we need to ration much corn we likely have'nt done it yet. Some folks lost their business playing that spread in 95 and a few folks lost their lives, just make sure you know the risk up front and are not just trying to justify you position. You can be right and run out of liquidity first. if you don't beleive me just ask Ned Cook and Willard Sparks.
Edited by dixonman 9/28/2010 23:53
| |
|
Minnesota joe I will play the July dec spread hard tommorrow
