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Ohiohedge
Member

low risk corn spread

Short CZ'10 - Long CN'11.  The spread is trading around 20 cents.  Probably won't get  a whole lot tighter.

 

Open interest in CZ is 776,000.  Traders who want to stay long corn will roll out of CZ soon and roll to March, May, or July.  Traders who are content with profits will simply sell CZ around the 10/8 report.  Both senarios result in the Dec.-July spread widening.

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3 Replies
giolucas
Frequent Contributor

Re: low risk corn spread

Hey Ohio,

 

At what level you would be a seller of Novi Beans?

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Ohiohedge
Member

Re: low risk corn spread

I don't really have a price to sell at... when corn tops, beans will follow.  On our farm we are keeping stored beans unsold until a later date.

 

 

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ag678
Veteran Contributor

Re: low risk corn spread

Would agree, the one thing the long only funds bring us is the opportunity to see pretty big carries, I'm hoping the Dec-Mar spread can get to .15 or better so I can get some stuff rolled out to March. With 700-800k in the Dec right now I feel pretty comfortable.

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