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Ontario's middle east | I'm not much help to you as I really don't follow the hards. What I can offer is the fact that I believe we have seen front month support in Chi because of quality issues. The market is trying to coax in the good quality wheat. I think the market gets satisfied on that in the not to distant future and the carry builds back in to Chi..... probably in the z-h&k spreads. I really don't think we have any wheat shortage, just a quality problem. The market will eventually work that out by grinding what it wants, then what it can get. It will likely build carry by discounting the front end and thats when the chi/Kan spread gets a little more normal. To figure out which one of those is the analogue, we need to know what drove them there in the first place. I'm no help there other than to suggest the obvious weather inflicted crop size discrepancies. | |
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KW Vs W Z Spread
