Wheat Spread is gone. (Futures Friday)
Thursday, April 14, 2022 at 4:55:09 p.m. UTC
Wheat Spreads Between All three wheats
All three wheats are trading basically on par with each other. This is typically not normal as there should be some spread between them. Typically the spread is about 85 cents
Is there Trade?: Yes. But too early to execute. Wait till summer.
· Risk: Spread can continue to be out of whack for some time.
· Reward: Expect Minneapolis wheat to trade at a premium again. Average premium is about 85 cents.
· Duration: wait until summer. This will give better indication on production and global situation.
· Mechanics: Spread trade Buy Minneapolis wheat and sell either Kansas or CBOT Wheat