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TFC Commodity Trading Forum

Corn/Wheat Spread Trade/ Harold *PIC*

Here is a chart of the Corn/Wheat Spread trade I mentioned awhile back.(Ch2/Wh2) Or use the May months that are working the same with more time on your side. I believe you said you were taking this trade. Price bounced nicely off support and is doing fine. Price gaped up Friday. And as I said what I like about a spread trade is both can fall or rise and it really doesn't matter a damn as long as the long position Corn outperforms the short position Wheat. This is exactly what happened Friday with both Corn and Wheat falling on the day but Corn held up better than Wheat so the spread gained smartly in value as the chart shows. And the seasonals for Corn are bullish into spring with Wheat bearish in that same time frame. While seasonals are never exact and can be even contrary to the norm as long as this bullish Corn and bearish Wheat seasonality works even mildly this trade will be a winner. So far so good. All you need in place is an exit strategy.

Messages In This Thread

Corn/Wheat Spread Trade/ Harold *PIC*
Re: Corn/Wheat Spread Trade/ Trades
Re: Corn/Wheat Spread Trade/ Harold *PIC*