Weekly Winners & Losers
What’s that green stuff?
Corn was in beast mode last week, continuing its trek higher despite large losses in soft red wheat.
Chicago wheat futures took a beating mid-week when China cancelled some of their outstanding soft red wheat commitments.
May SRW futures finished out the week 20 cents lower, but even more noteworthy was the move in the May-Jul spread who took a near-10c nosedive on the back of cancellations.
Strong export pull had pushed May to nearly even with July futures just a few weeks ago, but that party appears to be over now.
Sell Chicago/buy KC was the theme as May HRW futures closed 24c higher on the week, driving its premium over SRW to its highest level since November.
Looking at HRW’s premium over SRW closer:
And let’s jump back to the May-July spread for just a bit, comparing the divergence between the K/N of SRW and HRW in recent weeks:
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