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Veteran Advisor
Posts: 3,058
Registered: ‎06-26-2012
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Sep-Dec bull spreading in corn

Anyone see that HUGE order hit the mkt in last minute of trade today?

c-x-1

Senior Contributor
Posts: 1,606
Registered: ‎05-03-2010
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Re: Sep-Dec bull spreading in corn

Yes. It was on the screen. Not in the pit. It was started with Sep/Mar and in the last few minutes that moved out almost 30 cents. The Sep/Dec naturally followed. Ugly. No orders in the pit to off set it. Blood everywhere. In the close out period the Sep/Dec traded from 40 down to 30...haven't seen anything like it in years.

 

Scott

Veteran Advisor
Posts: 3,058
Registered: ‎06-26-2012
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Re: Sep-Dec bull spreading in corn

i haven't either. i believe same action in soy.

the aug forecast came out looking ugly; asian trader talking 'bout runnung outta beans before S.A. harvest.

what else do you think besides obvious - like a dam starting to give?

Senior Advisor
Posts: 2,569
Registered: ‎05-13-2010
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Re: Sep-Dec bull spreading in corn

t's kind of fun to bounce a skittish market with rumors, eh? On the other hand, the facts are the facts unless you year a rumor.

 

Pretty much the Wild West when you can use computer trading to pick off a position at the last second and ambush everyone. That's a really useful market function.

 

Pretty soon the CBOT will do something REALLY wild! Like allow producer/hedgers to enforce the face value of their contract with a delivery of the dreaded 'physical'. Can you IMAGINE the panic when funds have to cover logistical costs?? I mean, like the real world? I'm telling you, that would do traders a real service by providing some 'liquidity' (or not).

Senior Contributor
Posts: 315
Registered: ‎05-13-2010
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Re: Sep-Dec bull spreading in corn

Pal while I agree producers should be a able to deliver aganist a futures  contract. I don't see how that would effect the funds since most  get out of the next delivery month before first notice day. BTW cx1 I had that spread on with a open order to get out with +.20 cent sept over the dec I thought since it happen so fast I would luck out and get a better fill, but  nope that wasn't going to happen, oh well I made money.

Veteran Advisor
Posts: 3,058
Registered: ‎06-26-2012
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Re: Sep-Dec bull spreading in corn

I'll leave my commenting to this - with all the "professional trader" chatter going on about shorting the public as they start to get long, found it an interesting MOC order for corn & beans.

Contributor
Posts: 15
Registered: ‎05-20-2011
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Re: Sep-Dec bull spreading in corn

NDf

 

futures may actually converge to cash if everyone who owned a "contract" was able to enforce said "contract" for better or worse

 

what a quaint notion an actually enforceable "contract"

 

CONTRACT

 

can I get a LMFAO!

 

thanks CME you guys are doing an absolute bang up job

 

how are my "segregated" funds doing?  Thanks for the second vote of confidence--since Novemeber

 

would be sweet to actually have some confidence in my "hedge"

 

I think I would prefer the Vegas mob of the good ol days to run the casino as opposed these Keystone Cops...

Friend
Posts: 1
Registered: ‎07-30-2012
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Re: Sep-Dec bull spreading in corn

This spread might be a good buy in here now around 5 to 6 (on the buy side).  We closed 5 1/4 to the buy on Friday (7/27).  I could see a run back to 20 and even higher as the situation for corn is only going to get worse. 

Notice the premium in the front months going out into 2013, watch that, this spread will do well if front month prices become more inverted (backwardation) as crop conditions worsen.  Over time however this will level out due to the price incentive to buy deferred.

Floyd Upperman