Grain Spreads: Wheat vs Corn
Please join me for a free grain webinar every Thursday at 3pm Central. We discuss supply, demand, weather, and the charts. Sign Up Now
Commentary
Ukrainian drones hit the Russian Baltic Sea port area of Ust-Luga overnight which has been increasingly used by Russia to
export energy of late, while the port also has notable oil product export capabilities, as well. The extent of damage is unknown
at this time. Russia said they shot down roughly 150 Ukrainian drones over the Leningrad region overnight, as well. Comments
from the trilateral meetings between the U.S., Russia and Ukraine in Abu Dhabi this week have been very limited up until this nugget
from the Russian side. Moscow’s chief negotiator Vladimir Medinsky stating that Russia sees no possibility of exchanging territory with
Ukraine as part of any peace deal, quoted as saying: “as for territorial issues, every inch of our land will be returned to Russia. One way or another.”
He also added “the buffer zone along Russia’s border with Ukraine is already quite substantial and it will continue to expand. “
In my opinion these comments are on nonstarter without any meaningful progress made. Chicago wheat has been down 10 weeks in a row.
Yes, its oversold but needs a story aside from funds that are 90K short in an oversold technical situation. Last night’s attack hit energy infrastructure,
t could only be a matter of time before grain terminals are targeted on the Baltic.
Trade Idea
Buy the March 27 Chicago wheat vs March 27 corn spread at 1.50 wheat over. The spread has collapsed from high to low of $1.08 since early September. Looks over done and perhaps a bounce
Is in order. Work to buy at 1.50, with a 11 cent GTC stop at 1.39. This risks approximately $550.0 per spread plus commissions and fees. If filled at 1.50 wheat over, work an order to sell the spread at 1.93, for a gain
Of 43 cents less trade costs and fees.
If you would like to receive more information on the commodity markets, please use the link to join our email list Sign Up Now
Sean Lusk
Vice President Commercial Hedging Division
Walsh Trading
312 957 8103
888 391 7894 toll free
312 256 0109 fax
Walsh Trading
311 S Wacker Drive Suite 540
Chicago, Il 60606
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. The information contained on this site is the opinion of the writer or was obtained from sources cited within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices.PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.