Playing spreads a good idea?

[dirtgirl]

Am thinking of doing a wheat spread, with an equal number of long Mar 11 MPLS and short Mar 11 CBOT. Also thinking about doing a similar long Mar Oats and short Mar Corn spread(more oat contracts than corn contracts). I figure that the whole thing could be backstopped by Agristability. Which months would you use? Would a short wheat/long corn spread be better? Any thoughts or suggestions?

[tipsy]

I hear lots of rumbling on both long and short side of wheat. Which tells me its going to remain voiitale. Shorting corn right now would make me very nervous as Ithink the u.s. corn crop is not as big as some think. I'd like to hear more on how you feel agstab is going to carry your margin loss if one should occur. Just my .o2. Give'er a try and good luck.

[mbratrud]

Your Wheat Spread looked better a about 6 weeks ago but there might still be some legs you never know.

[charliep]

A lower risk way of speculating but speculating none the less. Your decisions driver is price relationships between crops and delivery months that don't make sense either fundamentally or from an historical basis.

Won't comment on your wheat on wheat or corn versus oats but several of the charting packages do a good of spreads - particularly on the MGEX and KCBT websites.

Back with agristability? You would have to explain. Would hope none of these programs backstop a speculative position. You take the futures - you take the pain losses or pleasure of profit.