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| All spreads have weakend with this rally as they should. If the market feels the need to curb demand it will take place in the front month. I had a conversation this week regarding this spread and one thought is if the crop is indeed a 162 or up then we will have enough corn to get to new crop 2011. If that is the case we should see 2011 gain on 2010 with an upcoming acerage battle. Therefor sell 10 buy 11. If the crop is under 160 then Kattie bar the door we need to get to a price where someone stops using the stuff. 10 continues to gain on 11, to a point. Either way I don't like the spread due to the risk and I don't ever spread across crop years. | |
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DEC 10 to DEC 11
