Minneapolis / Chicago wheat

Andreas

Active member
109 0
Minneapolis (MW) wheat has a higher protein content than Chicago (W) wheat. Therefore it ususally trades at a premium to Chicago wheat. Minneapolis wheat tends to gain on Chicago wheat in the last 4 months of the year. Sometimes as high as $1 over Chicago. The spread trades at historical lows at the moment (last quote 12.75 cents premium Minneapolis, basis the December contract), with support at the 6 - 7 cents area.
This offers a nice spread trading opportunity, by buying Dec MW and selling Dec W.
Risk to 2 cents premium MW with a profit objective of 50 cents premium MW. Just my 2 cents. I will watch this spread over the next few weeks for the right time to enter.
 

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