Play Turner's Take Ag Marketing Podcast Episode 302

If you are having trouble listening to the podcast, please click here for Turner's Take Podcast episodes!

NEW PODCAST

This week we go over the Ukraine/Russia war and how it caused limit up moves in the wheat markets. We then take a deeper dive into May Chicago Wheat and why it was the leader of all wheat contracts.  We end with a discussion on how we derive synthetic values using May SRW Wheat as an example. 

If you are not a subscriber to Turner's Take Newsletter then text the message TURNER to number 33-777 to try it out for free!  You may also click here to register for Turner's Take.

Synthetic Trading Values

During the podcast I did a live market example of determining May Chicago Wheat synthetic values.  I have a screen shot of a similar example below.  May Wheat is limit up at $12.09 but synthetically it was trading at around $12.60.  Here is an example from today on how we figured out the synthetic value for May SRW Wheat.  Please see quote board below as a reference for the example.

* At 12:58pm CT today May Wheat was locked limit up at $12.09; up 75 cents on the day

* July Wheat was trading at $11.5050, only up 34.25 cents.  While May was limit up, July was still trading freely

* The May/July futures spread was also trading freely.  The limit for futures spreads is twice the daily limit for flat priced futures.  May/July was at $1.0950, up 91.75 cents on the day, but the limit for futures spreads is $1.50 (75 cents X 2)

* When May/July is at $1.0950, that means May is trading $1.0950 over July

* July is freely trading at $11.5050

* $11.5050 (July) + $1.0950 (May/July spread) = $12.60

Click here to open an account with Craig Turner & StoneX today!

About Turner's Take Podcast and Newsletter

If you are having trouble listening to the podcast, please click here for Turner's Take Podcast episodes! Craig Turner - Commodity Futures Broker 312-706-7610 [email protected] Turner's Take Ag Marketing: