We are watching the Sep/Dec corn spread for two reasons:
(1) We believe the premium of the Sep contract is worthy of cash sellers to go after if delivered by mid–September.
(2) Speculative sell the bear spread to add to cash values. We will be looking at this alternative very carefully as we move into late April to early May.
The last time we saw spreads anywhere near the current level was in 1996 when the spread was taken clear out to 70 cents. At this time the spread is at 50 cents and that’s our near-term target to consider bear spreading.