Sep 17, 2014
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Grain Hedge

RSS By: Brock Schimbeno, AgWeb.com

Grain Hedge is a self-directed discount brokerage that saves farmers money when trading in the futures and options market. For $7 commissions per side producers can execute their marketing strategy with authority, any time the markets trade.

Feed Usage Implications of Corn - Wheat Spread

Oct 12, 2011

Today's USDA WASDE report held no surprises for corn and beans, but wheat stocks came in well above expectations. There is a glut of wheat in the market right now, with global wheat stocks at 10 year highs. You can see from our corn - wheat spread chart below that after today's trade we see DEC corn at an 18 cent premium over the DEC Chicago wheat contract.

With this divergence between these two markets, livestock producers may find opportunities to substitute wheat in their feed diets. High stocks should keep wheat well supplied in the market place and this substituion will only further hurt a weak demand scenario for corn. To keep track of this and other spread opportunities in real-time from your home computer, take a demo of the Firetip platform! Grainhedgebutton

corn wheatspread

 

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THERE IS A RISK OF LOSS IN TRADING FUTURES AND OPTIONS. FUTURES TRADING IS NOT APPROPRIATE FOR ALL INVESTORS.
PLEASE READ OUR RISK DISCLOSURE.

 
 
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