|
| I am speculating on basis that far out because the bids are very wide.
May 2012 right at $6 cash delivered to mill. I think if you sold July 11 futures right now the spread will go from 50 cents out to 70 cents because of the large supply so my speculated cash price delivered to a mill would be $6.20
May 2013 (not trading yet) July 12 futures are right at $6.65 so assuming a 60 cent roll to May 2013 and a 50 cent under bid delievered to the a mill the cash price would be $6.75 in May 2013
Again that is speculation because I think people will catch on this fall and plant wheat to take advantage of the higher prices and large carries that are being offered, unless the market crashes and forces less wheat acres becuase of the large carryout which would cause the carrys to come in as supply is used up.
How was that for talking out of both sides of my mouth?
Speculators are keeping the price of wheat too high in Chicago compared to the rest of the world, IMHO, so as long as its happening I feel I have to do something to lock in nice margins.
Andy
| |
|
Selling SRWW
