Posted by: usset001 | October 22, 2009

Opportunity to start pricing the 2011 crop at the MGEX

mgexIt slipped under my radar, but the Sep’11 spring wheat contract (new crop for 2011) started trading about 10 days ago. It closed at $6.27 on the first day but, if you have not noticed, grain prices are strong. The Sep’11 contract closed today at a nice round figure of $6.50 per bushel. There are 8 contracts open as of yesterday.

I am cautious about pricing grain more than one year out and I am not suggesting that you should take action just because you can. But $6.50 futures ($6 plus cash wheat) is a good enough price to make you think. Patience.

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