Soybeans

So it's fair to say that this one has been a wild ride - especially over the last week.

Unfortunately we managed to get stopped out mid-week after everything was looking reasonably promising. And as you can see on the chart below there have been some seriously large intraday moves.

Soybeans began getting bid up after cash supplies starting getting tight. We could see that cash was trading at a premium to the futures. In my experience this has always been a worrying sign when trying to get short a spread. We saw something similar earlier in the year in corn and got stopped out on that occasion in similar fashion.

The frustrating thing here is that soybeans then proceeded to sell off in huge fashion (limit down) after everyone in the cash market decided to take some of the higher prices on offer and hence crush the cash market.

It's a shame as our spread is trading at the similar levels to last week and we effectively just got stopped out in the midst of the chop.

But that's trading...