CWB Wheat FPCs

[rook]

This has probably been answered on here already but why would you pick Dec over Mar or vice versa seeing how the CWB still controls movement?

[melvill]

I assume you are asking 'why would you pick a Mar basis over a Dec basis?' Is that correct?

Choosing a later Mar basis contract is only an issue if you lock in (fix) the basis first and then intend to lock in the futures later. If that is being done, then plan is to have a longer time period to take advantage of any possible rally in the time period just before US winter wheat comes out of dormancy.

If you intend to use a basis contract but will be locking in the futures first, during this current rally, Dec vs Mar means little because the basis must be locked in my Oct 31 anyway.