This is a sample entry from Tom Dosdall’s email newsletter, Dosdall Daily Edge, published on Monday, May 16, 2016.
With Friday’s commitment of Traders showing soybeans with a heavy net long position, and support starting to break on the Nov/July spread, I’d like to attempt to catch a ride back toward -0.05, where we spent the better part of six months recently.
Seasonally, I expect the premium should start to move toward Nov, (where the crop has a full growing season ahead) vs. the old crop supply (July) which is better known at this point.
Trade idea: Buy November and Sell July Soybeans @ 0.0725 or wider, premium to sell side. If filled, consider a risk level of 0.1500 GTC.
This material is conveyed as a solicitation for entering into a derivatives transaction.