Today I wanted to highlight another spot that I'll be watching over the next few weeks.
Wheat has been a bit of a follower in the grain markets of recent times as all the action has been in corn and soybeans on the back of hot weather and tight old crop supplies.
Wheat has been chopping around for a month or so, as there have been some issues with the competitiveness of US wheat in comparison to other worldwide markets.
The thing that intrigues me here is that the Mar14/Jul14 spread is trading around parity. For me parity is always a nice entry point and acts very much as a support/resistance level in many instances.
This spread benefits from the March contract coming under pressure when other worldwide markets (such as Australia) begin their harvest toward the end of the year.
Traditionally the best time to enter this one isn't until October 24th, but like I mentioned parity could be offering us a good price, both technically and historically.
We've seen this one bounce off parity twice already and it might be worth having a look should it trade in that vicinity again.
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